Brazil Economic Growth Cools Off After 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.

Official 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%.