Brazil’s Finance Ministry on Thursday trimmed its 2025 economic growth forecast to 2.2% from 2.3%, citing weaker-than-expected third-quarter results that also weighed on its outlook for the final three months of the year, as Reuters reported. Latin America’s largest economy has been slowing after an aggressive monetary tightening cycle carried out by the central bank in a bid to bring inflation back to its 3% target, plus or minus 1.5 percentage points. Since September 2024, the central bank has raised interest rates by a total of 450 bps, bringing the benchmark Selic rate to 15%, a near two-decade high. The ministry also cut its 2025 inflation projection to 4.6% from 4.8%, still above the official goal. However, the government kept its GDP growth forecast for next year unchanged at 2.4%, while lowering its 2026 inflation estimate to 3.5% from 3.6%.
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