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03.03.202612:12:12UTC+00Brazil GDP Inches Higher

Brazil’s gross domestic product edged up 0.1% quarter-on-quarter in the final three months of 2025, in line with market expectations, after a downwardly revised flat reading in the previous period. Private consumption was unchanged, reinforcing the ongoing slowdown in economic activity that has been evident since the second quarter of the year and supporting expectations that the central bank will resume its interest rate cutting cycle. At the same time, gross fixed capital formation contracted by 3.5%, indicating that the period of restrictive monetary policy by the BCB has weighed on investment. These drags were partially offset by a 1% increase in government spending. In addition, net external demand contributed positively to growth, as exports rose 3.7% while imports fell 1.8%.

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