Brazil Credit Costs Bite: Retail Sales Drop, GDP Growth Slows

Brazilian economic data for Q2 2026 show slowing growth and weakening consumption as high credit costs and household debt pressure demand. Retail sales fell 0.8% in June, GDP grew 0.5% in Q2 (down from 1.1% in Q1), and household consumption declined 0.4%. This signals a clear deceleration in domestic demand, raising concerns about the sustainability of Brazil's economic expansion.