Brazil’s economy slowed in 2025, growing by 2.3%. The country’s expansion was supported by the agricultural sector, although it lost momentum compared to 2024, when the economy grew 3.4%, the Brazilian government reported today.
The result is in line with market and government forecasts, which projected annual GDP growth between 2.2% and 2.5%.
Latin America’s largest economy recorded modest growth of 0.1% in the final three months of 2025 compared to the previous quarter, according to the Instituto Brasileiro de Geografia e Estatística (IBGE).
Inflation closed 2024 at 4.83% and fell to 4.26% by the end of 2025 — the lowest rate since 2018 and one of the lowest levels in the past three decades.
Despite the slowdown and significant uncertainty in the international scenario, Brazil managed to grow above 2% in 2025, supported by its strong agricultural industry, which surged 11.7% over the year.
Agricultural growth was mainly driven by increased production of several crops, such as corn (23.6%) and soybeans (14.6%), both reaching record levels in 2025.
The services sector expanded by 1.8%, while industry grew 1.4%, boosted by the hydrocarbons segment.
For 2026, financial market forecasts indicate that Brazil will continue on a path of deceleration, with projected growth of 1.8%.
Read more: Brazil’s oil production grows 14.6%, thanks to 3.95 million barrels per day
However, the government expects relative stability and estimates GDP growth of 2.3% in a year marked by presidential, regional, and legislative elections in October.
