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[BUSINESS] · Brazil · 100 sources

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Brazil economy shows signs of deceleration in second quarter 2026

The Brazilian economy showed signs of deceleration in the second quarter of 2026. According to data from the Fundação Getulio Vargas (FGV), the Gross Domestic Product (GDP) grew by 0.3%, a slowdown from the 1% growth recorded in the first quarter. This growth was primarily sustained by household consumption, particularly in services and durable goods.

However, monthly indicators suggest a sharper contraction in recent months. The Central Bank's IBC-Br index fell 0.6% in June compared to May. Within that month, industrial activity declined by 1.4% and the services sector saw a 0.5% decrease, while agricultural activity grew by 1%.

Market expectations remain stable according to the Focus Bulletin. Projections for 2026 inflation (IPCA) are held at 5.02%, with GDP growth expected at 1.98%. The Selic interest rate is projected to be 13.75% by the end of 2026, and the dollar is expected to remain around R$ 5.20.

Entities

B3 · Banco Central do Brasil · Brasil · Brazil · Central Bank of Brazil · Darío Durigan · FGV · Federal Reserve · Focus report · Fundação Getulio Vargas · Gabriel Galípolo · IBC-Br

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Sources

Inbra - Plásticos em Revista [plasticosemrevista.com.br]