US EditionBrazil's Economy Slows as High Interest Rates Curb Growth
Growth slowed from 3.4% in 2024 as high 15% interest rates and external trade tensions limited expansion, with agriculture leading a 2.3% rise, IBGE reported.
- Brazil's economy grew 2.3% in 2025, slowing from 3.4% in 2024 due to high interest rates.
- Economic growth was led by the agricultural and oil and gas sectors, while industry and services grew modestly.
- President Lula da Silva criticized high interest rates for holding back the economy ahead of October elections.
23 Articles
23 Articles
Brazil GDP Grew 2.3% in 2025, Weakest in Five Years
Key Points — GDP reached R$12.7 trillion ($2.5 trillion) but slowed sharply from 3.4% growth in 2024, weighed down by the 15% Selic benchmark rate — Household consumption grew just 1.3%, down from 5.1% in 2024, while record harvests drove agriculture up 11.7% — Forecasts for 2026 range from 1.6% to 2.3%, with the Iran […]
Slowdown in investment and consumption shows the effects of monetary policy.
Brazil's GDP grew by 2.3% at the end of 2025, a decline compared with 3.4% observed a year ago and its lower figure in five years. In the fourth quarter of the year, the Brazilian economy varied by 1.8%, with increases in services (0.8%) and agriculture (0.5%), according to data released on Tuesday by the Brazilian Institute of Geography and Statistics (IBGE). The agricultural sector recorded the greatest variation in aggregate volume, with an i…
The largest economy in Latin America slowed down last year. Brazil’s GDP (gross domestic product) grew by 2.3% in 2025 compared to 3.4% in 2024. It is the lowest growth in five years, the first time that the country grows less than 3% after the post-pandemia recovery. In the last quarter of last year, growth was almost zero, 0.1%. However, if you want to see the glass half full, it is the fifth consecutive year of growth.
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