LatinNews Daily - 23 September 2026

*The economic policy secretariat (SPE) of Brazil’s finance ministry has released a report showing an annual GDP growth forecast of 2.0% for 2026. This is down from the SPE’s previous forecast of 2.3% released in July. Regarding economic sectors, the SPE has lowered its annual growth forecast for services from 2.4% to 1.8%, while industry is projected to grow by 1.7% in 2026, down from the previous forecast of 2.1%. Meanwhile, the SPE has raised its 2026 annual growth projection for the agricultural sector from 1.8% to 2.8%. In its latest report, the SPE said there has been “weaker carryover” of momentum by the services sector from the first half of 2026 into the second half of the year, as well as highlighting the effects of Brazil’s high interest rates on domestic demand. The country’s benchmark interest rate (Selic) currently stands at 13.75%, and the central bank (BCB) has not hinted as to whether it will lower the Selic again this year. The report also warned that, despite relative stability in household debt, the share of income spent by households to repay debts has reached record levels, which in turn could further dampen consumer confidence this year. Regarding the outlook for the industrial sector, the SPE explained that manufacturing remains under pressure from high borrowing costs and lower consumer demand.

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