Brazil Growth Downgrades Cloud Post-Election Economic Agenda

Brazil's 2026 GDP growth forecasts are being cut (Itaú and Bradesco lowered estimates from 1.9% to 1.7%) as economic activity slows more than expected, while inflation remains above the 3% target. The election debate has shifted focus to institutional and social issues, sidelining economic policy. This slowdown will constrain the next government's fiscal room and may pressure the central bank's rate path.