Brazil Lowers 2025-26 Inflation and GDP Forecasts; IMF Sees Panama GDP Growth at 4.5% Supported by Spending Cuts Plan

Economists in Brazil have revised their forecasts for the country's inflation and economic growth in 2025 and 2026. According to a Central Bank poll, the annual IPCA inflation rate is now expected to reach 4.86% in 2025, down from a previous estimate of 4.95%, and 4.33% in 2026, slightly lower than the earlier forecast of 4.40%. The GDP growth forecast for Brazil has also been adjusted downward, with expectations of 2.18% growth in 2025 compared to 2.21% previously, and 1.86% growth in 2026, marginally below the prior estimate of 1.87%. Meanwhile, the International Monetary Fund (IMF) has updated its outlook for Panama's economy, forecasting a 4.5% GDP growth in 2025. This revision follows the country's cabinet approval of a comprehensive spending cuts plan, which the IMF says will support Panama in achieving its fiscal goals for 2025. The IMF also noted Panama's economic recovery after the closure of a copper mine.