In January, in its latest report, the institution estimated a 2.2% increase for this year.
For 2026 and 2027, the World Bank projected a growth rate of 2%, as outlined in the Latin American and Caribbean Economic Report released today.
The World Bank’s forecast is more pessimistic than the International Monetary Fund’s (IMF) prediction of 2% and the latest Brazilian government projection of 2.3% for 2025.
The World Bank also emphasized that Brazil’s economy, the largest in Latin America, is vulnerable to the uncertainty caused by the trade war initiated by the United States.
The United States stands as Brazil’s second-largest trading partner, with manufactured goods exports playing a significant role in the trade balance.
The World Bank warned that Brazil’s budget deficit and public debt remain high, similar to other countries in Latin America.
In the same report, the institution reduced the economic growth forecast for Latin America and the Caribbean to 2.1% for 2025.
“The global economic landscape has shifted drastically, marked by higher levels of uncertainty,” stated Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean, in a press release.
