Brazil’s Finance Ministry has raised its GDP growth forecast for 2025, but expects a slowdown in the pace of economic recovery as a result of the country’s Central Bank’s tight monetary policy.
The GDP growth forecast for this year has been raised to 2.5 per cent from 2.4 per cent expected in May, while for 2026 it has been lowered to 2.4 per cent from 2.5 per cent.
The forecasts do not take into account the impact of Washington’s imposition of duties of 50% on all imports from Brazil, the Finance Ministry said. Earlier, US President Donald Trump announced that these duties would begin to take effect on 1 August.
“The duties are unlikely to have a significant impact on GDP growth rates in 2025, although certain industries could be hit quite hard,” the Finance Ministry said in a statement.
Brazil’s GDP grew 1.4 per cent in the first quarter of this year compared to the previous three months, the highest in three quarters. GDP growth in annual terms amounted to 2.9%.