Rio de Janeiro, Brazil, March 3, 2026 (AFP)
Brazil's economy grew 2.3 percent in 2025, cooling from the previous year as interest rates remain among the highest in the world, official data showed Tuesday.
The slowdown -- in line with market expectations -- comes seven months before Latin America's largest economy holds presidential elections in October.
Gross Domestic Product (GDP) had expanded 3.4 percent in 2024.
In the fourth quarter of last year, the economy grew 0.1 percent compared with the previous quarter, the Brazilian Institute of Geography and Statistics ( IBGE ) said.
"GDP remained stable compared to the third quarter, even with the decline in investment, due to stable household consumption and growth in government spending," Rebeca Palis of the IBGE said in a statement.
She added that economic growth had been driven by activities "less affected by the tight monetary policy."
Brazil's central bank kept its benchmark Selic rate at 15 percent in January, for the fifth time in a row, in a bid to curb inflation which stood at 4.44 percent the same month.
However, the bank signaled a possible cut in March, depending on the "uncertain external context," referring to global trade tensions and US economic policy.
President Luiz Inacio Lula da Silva, who is seeking a fourth term in October, has criticized high interest rates, which he says are holding back the economy.
In 2025, economic growth was led by the agricultural sector with record harvests of corn and soybeans -- of which Brazil is the world's largest exporter.
Oil and gas extraction also made a strong contribution.
Industry grew 1.4 percent and services 1.8 percent.
Brazil's economy was hit by US tariffs of up to 50 percent, which came into effect in August.
However, Washington has since exempted key export items such as beef and coffee.

Sumber : AFP