LatinNews Daily - 4 June 2025

*The International Monetary Fund (IMF) has concluded an Article IV Consultation with Brazil and released its preliminary findings, noting that the country’s economy has grown strongly in recent years. In a statement following its visit, the IMF projects that Brazil’s annual GDP growth this year will be 2.3%, which is higher than the 2.0% forecast for Brazil in the April edition of the IMF’s World Economic Outlook report. In the medium term, Brazil’s growth is expected to rise to 2.5%. In its report the IMF states that “risks to the growth outlook are tilted to the downside amid heightened global policy uncertainty” but adds that “a sound financial system, adequate FX reserves, low reliance on FX debt, large government cash buffers, and a flexible exchange rate continue to support Brazil’s resilience”. Regarding price stability, the IMF projects annual inflation in 2025 to reach 5.2% and gradually converge to the target of 3.0% (with a tolerance range of +/-1.5) by the end of 2027. The IMF statement also praises the monetary policy tightening pursued by Brazil’s central bank (BCB), which has been raising interest rates since September 2024.

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