Brazil’s low GDP figures indicate further interest cuts

Brazil published its GDP results for 2018—and managed to frustrate analysts’ already low expectations. Last year, Latin America’s largest economy grew by only 1.1 percent—showing that uncertainty about the future continues to hover over the country—and that the path out of the slump will be much harder than stock market excitement may indicate. Despite a second straight year of growth—even if a narrow one—the official results were below the average forecast by the markets, of 1.3 percent.

In 2018, Brazilian GDP reached BRL 6.8 trillion. And GDP per capita rose 0.3 percent to BRL 32,474.

“These results show the market how urgent it is to approve the reforms, as well as indicate there is room to cut interest...