Brazil Central Bank Raises Economic Growth Forecast as Stimulus Flows (opens original article in a new tab)

Brazil's central bank increased its 2026 economic growth forecast due to strong labor market and government spending, but warned that stimulus could fuel inflation.

• Brazil's central bank raised its 2026 economic growth forecast to 2% from 1.6% in March
• Central bank officials cited strong labor market, government spending, and domestic demand as reasons for the revision
• Policymakers warned that stimulus measures could increase inflation above the 3% target