Analysis by Region - Emerging Markets - Brazil
Description
Since last month, we've nudged our 2025 GDP growth forecast down marginally by 0.1ppt to 2.3%, to reflect a more frontloaded correction in domestic demand in July, with a lacklustre rebound in August. Our Q3 growth estimate stands at -0.4% q/q, but the monthly carry-over implies risks are tilted to the downside. Our 2026 growth projection is unchanged at 1.8%, buoyed by a boost to labour disposable income and thus household consumption from Lula's new income tax exemptions bill, approved by the lower house a few weeks ago.
Table of Contents
9 Pages
- Brazil: Income tax reform to support consumption next year
- Forecast overview
- Recent developments
- Short-term outlook
- Key drivers of our short-term forecast
- Debt sustainability analysis
- Economic risk
- Economic risk evaluation
- Risk warnings
- What to watch out for
- Global scenario analysis
- Long-term prospects
- Alternative long-run scenarios
- Background
- Economic developments
- Structure of the economy
- Balance of payments and structure of trade
- Politics
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