Brazil’s economy expanded at a slower pace in the second quarter of the year, growing by 0.4% compared to the previous three months, according to official figures released on Tuesday. This marks a significant deceleration from the revised 1.3% growth recorded in the first quarter, as the positive impact of a strong agricultural harvest faded and tighter monetary conditions weighed on activity. The latest reading slightly exceeded the 0.3% median forecast from analysts surveyed by Bloomberg. n nOn a year-over-year basis, the nation’s gross domestic product increased by 2.2%, reflecting continued but more restrained expansion. The central bank’s high interest rate policy, implemented to control inflation, has begun to constrain consumer spending and business investment, contributing to the cooling economic momentum. Analysts suggest that while the economy remains resilient, the restrictive financial environment is expected to keep growth subdued in the near term.
— news from Bloomberg.com
— News Original —
Brazil GDP: Economic Growth Pace Slows as High Interest Rates Take Toll
Brazil’s economy posted a modest expansion in the second quarter, marking a notable slowdown from the start of the year after the boost from a bumper harvest faded and high interest rates bit into growth. n nOfficial data released on Tuesday showed gross domestic product expanded 0.4% in the April-June period versus the prior quarter, above the 0.3% median estimate from analysts in a Bloomberg survey though well below the revised 1.3% expansion seen in early 2025. From a year prior, the economy grew 2.2%.