Brazil’s economy stalls at year-end, hit by high interest rates and tariff pains

Golden Ten Data reported on March 3 that Brazil's economy showed weakness by the end of 2025, with high borrowing costs and tariff policies that dampen growth and pave the way for monetary easing dragging down economic performance. Official data released on Tuesday showed that gross domestic product grew by 0.1% quarter-on-quarter from October to December last year, while the third quarter data was revised to 0.0%. This result was below the median expectation of 0.2% from surveyed analysts. Compared to the same period last year, the economy grew by 1.8%. Despite the fact that this largest Latin American economy has demonstrated remarkable resilience even with interest rates at their highest level in nearly twenty years, this slight growth is the latest evidence that the central bank officials' hawkish stance is having a negative impact. They are scheduled to begin lowering the benchmark interest rate from 15% this month, but have promised to proceed cautiously. Brazil Central Bank President Gabriel Galipolo stated in February that the start of rate cuts "is not a victory celebration."