FX.co ★ Brazil Growth Picks up as Expected

In the first quarter of 2025, Brazil's gross domestic product (GDP) experienced a notable growth of 1.4% compared to the previous quarter, marking the most significant increase in three quarters and aligning with market expectations. This robust growth was primarily driven by a 3.1% rise in gross fixed capital formation, despite the Central Bank of Brazil maintaining restrictive interest rates in an effort to combat inflation exceeding target levels amid a fiscal policy stance that encourages spending. Meanwhile, private consumption saw a 1% increase, and public spending showed minimal growth, edging up by just 0.1%. Year-over-year, Brazil's GDP expanded by 2.9% in the first quarter.