Brazil's Economy Accelerated in Q1 With 1.29% Growth, IBC-Br Shows

Brazil · Macroeconomics

Key Facts

—Brazil’s economy grew 1.29% in Q1 2026 versus Q4 2025. The Banco Central published its Economic Activity Index (IBC-Br) Monday May 18. The acceleration confirms the recovery trend from the late 2025 slowdown, when Q4 2025 grew just 0.36% after data revisions.

—Year-on-year growth came in at 1.41%. Against Q1 2025 without seasonal adjustment, the IBC-Br accelerated meaningfully. Services led the year-on-year reading at 2.38% growth, with industry adding 0.28% and agriculture declining 0.53%.

—Industry recovered sharply with 1.30% growth quarter-on-quarter. The industrial sector grew 1.30% in Q1 2026, reversing the 0.31% contraction in Q4 2025. The recovery is a meaningful signal that the manufacturing slowdown of late 2025 was not structural.