Brazil's economy slows as high interest rates curb growth

The slowdown -- in line with market expectations -- comes seven months before Latin America's largest economy holds presidential elections in October. Economist Andre Perfeito attributed it to persistently high interest rates, which are impacting investment, and low household consumption. In 2024, Gross Domestic Product (GDP) grew 3.4 percent. In the fourth quarter of last year, the economy grew 0.1 percent compared with the previous quarter, the Brazilian Institute of Geography and Statistics (IBGE) said.