Brazil barely grew in Q2: only 0.2%, after 1.3% previously

WHAT HAPPENED

Brazil's economic activity grew only 0.2% in the second quarter of 2026, compared to 1.3% in the first. In June, it fell 0.6% month-on-month: industry dropped 1.4% and services 0.5%.

WHY IT MATTERS

The Selic rate remains at 13.75% to contain inflation. This makes loans for homes, cars, and businesses more expensive, reducing spending and investment. Industry and services feel it first; agriculture was the exception, with a 1% increase.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, Brazil combines an economy that is losing speed with potential lower rates ahead. This could ease loans and support businesses, but it also shows why stocks and the real may move before the daily economy improves.