Brazilian banks cut 2027 GDP forecasts
Major Brazilian banks have sharply reduced their economic growth forecasts for next year, threatening government budget surplus goals and raising fiscal pressures on President Lula.
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Top lenders in Brazil slashed their 2027 GDP growth forecasts to between 0.3% and 0.5%, threatening President Luiz Inacio Lula da Silva's fiscal targets. The downward revisions follow the central bank's decision to hold its benchmark interest rate at 13.75% amid persistent inflation. Slower economic activity risks widening the primary budget deficit and undermining campaign spending promises.
