Brazil’s Economy Surges, Keeping Central Bankers Wary on Interest Rates

Brazil’s economy leaped forward at the start of 2025 on gains across several key sectors, likely making it more difficult for the central bank to end its increases to sky-high interest rates.

Government data released on Friday showed gross domestic product expanded 1.4% in the first three months of the year, largely on bumper crops as well as strong family consumption, which is being fueled by a hot jobs market and rising wages. Growth came in just under the 1.5% median forecast, a bold estimate given borrowing costs are at the highest level in nearly two decades.