Brazil's economy saw no growth in the second half of 2025, as reflected in stagnant household consumption and a drop in productive investment. The annual GDP growth rate stood at 2.3%, falling short of the 3.4% recorded in 2024. This deceleration can be largely attributed to a tightening monetary policy aimed at controlling inflation, which some analysts argue could have resulted in an even more pronounced decline if not for government interventions.

The performance of the economy was somewhat bolstered by strong results in agriculture and extractive industries, which are less influenced by domestic economic cycles and contributed significantly to the growth despite their small share in the overall GDP. Together, these two sectors—accounting for less than 11% of the GDP—contributed nearly half of the overall economic growth seen in 2025. This statistic highlights the resilience of certain sectors amidst broader stagnation.

The latest GDP figures mark a departure from the positive surprises seen in economic activity following the pandemic, which were driven by substantial government spending that began in the latter part of Jair Bolsonaro's administration and continued to expand under Luiz Inácio Lula da Silva. This shift raises concerns about future growth and economic stability as uncertainties linger in both domestic and global markets.