IIF: Brazil should grow 2% in 2026 and Latin America's growth should decrease to 1.9%

By Thais Porsch São Paulo, 04/12/2025 - Brazil's growth is expected to remain close to 2% in 2026, supported by strong agricultural and energy exports, according to a report by the Institute of International Finance (IIF) published today. Meanwhile, the growth of Latin America as a whole is expected to decrease slightly next year, to 1.9% (from 2.1% this year), due to domestic political cycles, fiscal challenges, and uncertainty about geopolitical developments. The IIF points out that Brazil received significant inflows in 2025, supported by disinflation and stronger-than-expected GDP growth, despite record real interest rates. "Fiscal accounts are Brazil's main vulnerability, as stabilizing the debt requires an adjustment of the primary balance of approximately 3% of GDP," it says. Political uncertainty surrounding the 2026 presidential elections will still shape capital flows over the next year, and the Brazilian Central Bank will maintain a hawkish stance to help anchor ...