According to data from the Brazilian Institute of Geography and Statistics (IBGE), Brazil’s Gross Domestic Product (GDP) reached about US$610 billion in the second quarter of 2025, with a growth rate of 0.4% compared to the previous quarter.
This is the highest value recorded since the country began its current GDP tracking series in 1996. It also marks the 16th consecutive quarter of economic expansion. Compared to the same period in 2024, the economy grew 2.2%.
In the first half of 2025, Brazil’s GDP grew 2.5%, and over the past 12 months, the expansion totaled 3.2%. From a production standpoint, services grew by 0.6% and industry by 0.5%, which offset a slight 0.1% contraction in agriculture.
Services and consumption lead the growth
The main drivers behind the growth were financial services, insurance, information and communications (particularly due to software development), as well as transportation and logistics, especially in passenger travel.
On the demand side, household consumption rose by 0.5%, also a historic high. In contrast, government spending declined by 0.6%, and investments fell 2.2%.
When comparing Q2 of 2025 to the same quarter in 2024, agriculture stood out with a 10.1% jump, which significantly boosted the overall economic performance.
Despite the positive results, the 0.4% growth in the second quarter represents a slowdown from the 1.3% recorded in the first quarter. According to IBGE coordinator Rebeca Palis, this deceleration was expected due to Brazil’s high interest rates.
“Manufacturing and construction industries, which rely on credit, are particularly affected in this scenario,” she said.
Interest rates weigh on credit and investment
High interest rates have a contractionary effect on the economy, making loans more expensive and discouraging investment. As of August 2025, Brazil’s benchmark interest rate, the Selic, remains at 15% annually, the highest level since July 2006 (15.25%).
This tightening cycle began in September 2024, when the Selic stood at 10.5%.
For the full year, financial analysts forecast a GDP growth of 2.19%, according to Brazil’s Focus Bulletin, while the Finance Ministry projects a 2.5% increase. In 2024, Brazil’s GDP had already expanded by 3.4%, the fourth consecutive year of growth, and the strongest performance since 2021.
