Central Bank Index points to economic growth of 2.5% in 2025 with a recovery in the 4th quarter
Brazil's economic activity ended 2025 with a growth of 2.5%, driven by agriculture and services sectors, despite a 0.2% decline in December.
According to data released by the Central Bank of Brazil, the country's economic activity concluded 2025 with a projected growth of 2.5%, indicating a resurgence in the fourth quarter primarily fueled by the agricultural and services sectors. The Central Bank's Economic Activity Index (IBC-Br), which serves as a leading indicator of the country's Gross Domestic Product (GDP), revealed a 0.2% decline in December compared to the previous month. This decline was less severe than the 0.5% contraction predicted by a Reuters survey, signaling resilience in Brazil's economic landscape.
Despite the monthly dip, the index showcased a recovery with a 0.4% increase in the fourth quarter compared to the preceding three-month period. This uptick suggests a rebound from a notable contraction of 0.83% between July and September. In comparison, data from the Brazilian Institute of Geography and Statistics (IBGE) indicated a modest growth of just 0.1% in the third quarter, underscoring the strengthening of economic momentum as the year drew to a close.
Looking forward, the IBGE is set to release detailed GDP figures for the fourth quarter and for the year 2025 on March 3. The anticipated data will provide a clearer picture of economic performance, reflecting the recovery trajectory following earlier slowdowns and the impact of crucial sectors like agriculture and services on Brazil's overall economic health. As the economy shows signs of vitality, stakeholders will be keenly watching these statistics for insights into future growth patterns and policy implications.