Economists point out that GDP should slow down in the coming months

Brazil's GDP (Gross Domestic Product) recorded growth of 1.1% in the first quarter of 2026, a result in line with market projections.

Despite the positive performance, the expectation is for a slowdown in economic activity in the following quarters, according to Gabriel Couto, economist at Santander.

Brazil's economy is expected to slow down in the next quarter, says economist | MONEY NEWS

Continue lendo

01/06/2026

Explosion at aerospace factory leaves two dead in South Korea

Firefighters respond to a fire caused by an explosion at a company in Daejeon, South KoreaYonhap / AFPAt least two peo...

01/06/2026

US attacks Iranian drone and radar command facilities

The United States carried out attacks against Iranian radars and drone command and control centers on the Iranian isla...

01/06/2026

End of the 6x1 scale: the political agreement and the future of the proposal - The Issue #1731

On the night of last Wednesday (27), the plenary of the Chamber of Deputies approved in two rounds the Proposed Amendm...

Couto pointed out that the good performance of the first quarter is linked to a series of fiscal stimulus factors concentrated at the beginning of the year.

Among them, he highlighted the income tax exemption for salaries up to R$5,000, relevant government transfers and a job market that, according to him, "to some extent, surprised positively". These elements, combined, explain the strength of domestic demand observed in the period.

However, Inter's chief economist, Rafaela Vitória, was direct in stating that this scenario is not sustainable.

Top Cifras

Toque agora.

1 Irmão Da Lua, Amigo Das Estrelas (ver. 2) Zezé di Camargo e Luciano

2 C Só pra te adorar Corinhos Evangélicos

3 Leve Desespero Capital Inicial

4 Aneurysm Nirvana

"That's not very sustainable throughout the year," he said. "We expect this stronger growth in the first quarter to lose momentum and we tend to see GDP growing less this year compared to the growth we saw last year."

The expectation is that GDP will grow less throughout the year, says Inter's chief economist | PRIME TIME

For the remaining quarters of 2026, Santander's projection points to an average quarterly growth of 0.4%, well below the 1.1% recorded in the first quarter.

According to Couto, this scenario reflects the more intense effect of the interest rate, which remains at a restrictive level, as the fiscal impulse fades.

"It is a scenario that begins to feel the effect of interest rates a little more as this fiscal impulse fades away", explained the economist.

According to Marianna Costa, chief economist at Mirae, the country is facing a scenario similar to that observed in previous years, in which the beginning of the year presents more intense economic activity, followed by a slowdown in subsequent quarters.

"We are more like the second case", said the economist, referring to the possibility of unstable growth, without a real tendency for sustained expansion.

"This vigor that we observed in this first quarter should not be repeated in the coming quarters."

We will have weaker GDP in the coming quarters, says economist | MORNING CALL

The growing debt of families was also highlighted as a factor that should put downward pressure on consumption in the coming months.

Costa observed that, with a population increasingly indebted, the tendency is for consumption to gradually slow down, reducing one of the main drivers of recent economic growth.

Looking ahead to the following year, Santander projects a further slowdown. While the annual growth estimate for 2026 is 1.8%, the projection for 2027 is just 1%.

According to Couto, this is due to the continued effects of restrictive monetary policy - with the interest rate still high at the end of the year - and a fiscal impulse that, in the economist's view, "does not help as much as it helped this year".

"In general, these are factors that support lower growth than we tend to see in 2026", he concluded.

Source: CNN