💪 Still strong

ECONOMY

Brazilian economy continues on a strong note

The Brazilian economy grew at an annual rate of 2.9% in Q1 2025, the Brazilian Institute of Geography and Statistics reported minutes ago. The economy is slowly decelerating, but continues to defy expectations of a more pronounced cooldown thanks to the enduring strength of agribusiness. 

IBGE shows that farming activity surged at an annual rate of 10.2%, buoyed by favorable weather conditions and projections of a record soybean harvest. And despite the weight of high interest rates, household consumption grew by 2.6% compared to Q1 2024, and imports expanded by 14% in the same period. Additionally, investments were up 9.1%.

Still, parts of the economy are beginning to show signs of strain — notably the industrial sector (down -0.1% against Q4 2024) and certain segments of the services sector are revealing the creeping toll of monetary tightening. “Manufacturing industries and construction fell by 1.0% and 0.8%, respectively, in Q1 2025 compared to Q4 2024,” said Rebeca Palis, IBGE's GDP survey coordinator.

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