Brazil Q2 GDP seen slowing as high rates, global risks bite

Brazil’s Q2 GDP expected to grow 0.3% quarter-on-quarter, sharply slower than Q1’s 1.4%. [https://invezz.com/wp-content/uploads/2025/06/brazil-cenabnk-invezz.png] Brazil’s economy is likely to exhibit strong indications of weakening when the second-quarter Gross Domestic Product (GDP) data is revealed on Tuesday. According to local media outlet InfoMoney, economists and financial institutions expect a major slowdown from earlier this year, as high domestic interest rates and global uncertainty about Donald Trump’s retaliatory tariffs begin to weigh on activity. According to ASA Investimentos and Banco Pine, GDP is expected to grow by 0.3% quarterly and 2.1% year on year, following a 1.4% gain in the first quarter. Banco Daycoval has significantly higher expectations, projecting 0.5% growth for the quarter and 2.4% for the year. “All economic growth in 2025 is likely to be concentrated in the first half of the year, given the prolonged impact of restrictive financial conditions and a more uncertain global environment on domestic activity,” stated Banco Pine’s director of macroeconomic research, Cristiano Oliveira. SECTORAL PRESSURES: AGRICULTURE SLOWS, INDUSTRY UNDERPERFORMS Agriculture, which drove Q1 growth on the back of the bumper 2025 harvest, is…