Key facts
- Brazil's government lowered its economic growth forecast for 2026 to 2.0% from 2.3%.
- The government also revised down its forecast for next year to 2.3% from 2.5%.
- Weaker expectations for services and industrial output offset a stronger outlook for the agricultural sector.
Brazil's government announced on Tuesday that it is lowering its economic growth forecast for 2026 to 2.0%, down from the previously projected 2.3%. The Ministry of Finance's Economic Policy Secretariat cited weaker expectations for services and industrial output as the primary reasons for the downward revision, despite a stronger outlook for the agricultural sector. The government also adjusted its GDP growth forecast for next year, projecting a 2.3% rise, a decrease from the previously estimated 2.5%. This revision follows a second-quarter economic growth that fell below the government's expectations.