The Economic Activity Index (IBC-Br), a monthly indicator released by the issuing authority with data used to calculate the Gross Domestic Product (GDP), reflects the projected deceleration of the Brazilian economy for this year due to the rise in basic interest rates.
In comparison to May 2024, the index showed a growth of 3.2%. Over the last 12 months ending in May, the Brazilian economic activity grew by 4%.
In recent months, the Brazilian Central Bank increased interest rates in an attempt to control inflation, which currently exceeds the target set for this year of 3%, with a margin of 1.5 percentage points above or below.
For this year, the financial market forecasts a GDP growth for Brazil of 2.23%, below the 2.5% estimated by the Government.
These projections do not yet consider the potential impacts of the 50% tariff announced by the President of the United States, Donald Trump, on Brazilian imports starting August 1.
