The Brazilian Gross Domestic Product (GDP) lost momentum, and family consumption fell surprisingly for economists. The sum of all goods and services produced in the Brazilian economy showed a weaker result than expected.
Economists assess that the labor market, although still heated, was not enough to maintain the pace of household spending. This occurs in the face of still high interest rates and the high level of indebtedness of Brazilian families.
With the weaker result, economists are already beginning to revise their projections for the rest of the year and estimate lower dynamism in economic activity. Banco Inter now expects a GDP of 1.7% in 2026, versus the previous estimate of 1.8%.
Family consumption should contract by 0.2% in the third quarter relative to the second, and then advance only 0.3% in the fourth quarter relative to the third, setting up a picture of stagnation. Galapagos Capital had already revised GDP from 2% to 1.8% this year.
