Brazil: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil
July 17, 2025
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GDP growth in Brazil has been remarkably resilient over the past three years
and, as expected, is showing signs of moderation. The expansion has reflected strong
consumption supported by fiscal stimulus on the demand side, and supply-side factors.
Inflation rebounded in 2024 amid strong demand, a rise in food prices, and currency
depreciation. As inflation expectations rose above the target tolerance interval,
monetary policy entered a new policy tightening cycle in September. Long-standing
challenges remain, including elevated public debt and spending rigidities that crowd
out priority investments. The authorities have made progress on reforms to foster
sustainable and inclusive growth, including implementation of VAT reform.
and, as expected, is showing signs of moderation. The expansion has reflected strong
consumption supported by fiscal stimulus on the demand side, and supply-side factors.
Inflation rebounded in 2024 amid strong demand, a rise in food prices, and currency
depreciation. As inflation expectations rose above the target tolerance interval,
monetary policy entered a new policy tightening cycle in September. Long-standing
challenges remain, including elevated public debt and spending rigidities that crowd
out priority investments. The authorities have made progress on reforms to foster
sustainable and inclusive growth, including implementation of VAT reform.
Subject: Credit, Fiscal policy, Fiscal stance, Inflation, Money, Prices, Public debt
Keywords: Credit, exchange transaction, executive branch, Fiscal stance, Global, headline inflation, Inflation, inflation expectation, policy uncertainty, public sector Government Finance Statistics
Pages:
118
Volume:
2025
DOI:
Issue:
194
Series:
Country Report No. 2025/194
Stock No:
1BRAEA2025001
ISBN:
9798229017602
ISSN:
1934-7685
