OECD projected GDP growth in Brazil to 2% in 2026

Para 2027, the international body, however, reduced the projection from 2.1% to 1.9% of GDP growth, according to a new report released today.

On Tuesday, the Brazilian government’s economic team announced a downward review of GDP growth from 2.3% to 2%, driven by the fall of the services sector.

Next year, the growth projection of the Brazilian government was also revised from 2.5% to 2.3%, i.e. four percentage points above the new OECD estimate for 2027.

The OECD report cites that Brazil is among the emerging G20 economies that have managed to sustain growth despite the effects of war on the Middle East and high energy prices.

“G20’s growth in several other emerging market economies — such as India, Indonesia and Brazil — was sustained by resilient domestic demand and government policies that protected families and companies from the impact of high energy prices,” the report reports.

By also quoting adjustments in monetary policy interest rates, the OECD cites the Brazilian Central Bank as one of the few exceptions, among the monetary institutions of the G20 countries, which managed to reduce the basic interest rate to 1 percentage point since March.

Although it has highlighted Brazil as a ‘remarkable exception’, the OECD considers that the official interest, at 13.75%, is ‘very restrictive’.