Brazil’s economic output fell more steeply than projected in June, reinforcing signs that the central bank’s aggressive easing cycle is gaining traction even as growth prospects dim. The central bank’s IBC-BR index – a monthly proxy for gross domestic product that tracks agriculture, industry, and services – fell 0.64% from May, the largest monthly decline since May 2025. That came in below the 0.5% median estimate from economists surveyed by Bloomberg, signaling that the slowdown is sharper than many had anticipated.
The June drop pulled the second-quarter performance down with it. Based on the index’s trajectory, the data imply Brazilian gross domestic product expanded a scant 0.2% in the April-to-June period versus the first quarter. That is a marked deceleration from the 0.8% expansion recorded in the first quarter, and it underscores how quickly higher borrowing costs and weaker…
