Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Brazil cuts forecasts for 2025 economic growth, inflation

BY Reuters | ECONOMIC | 11/13/25 12:00 PM EST

BRASILIA, Nov 13 (Reuters) - Brazil's Finance Ministry on Thursday trimmed its 2025 economic growth forecast to 2.2% from 2.3%, citing weaker gross domestic product (GDP) growth estimated in the third quarter that also affected its outlook for the final quarter.

"Indicators suggest that activity continued to slow in the third quarter," the ministry said. "This slowdown was already expected, reflecting the lagged and cumulative effects of the restrictive monetary policy currently in place."

Brazil's benchmark interest rate is at a near two decade-high of 15% as the central bank seeks to bring inflation back to its 3% target, which has a tolerance band of 1.5 percentage points on either side.

The ministry's economic policy secretariat cut its 2025 inflation projection to 4.6% from 4.8%, still above that goal. (Reporting by Isabel Versiani; Writing by Isabel Teles; Editing by Gabriel Araujo)

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article