World Bank Predicts Slower Brazilian Growth in 2025; Argentina's Central Bank Reserves Decline Amid IMF Deal Uncertainty

The World Bank anticipates a deceleration in Brazil's economic growth for 2025, according to Marcos Vinicius Chiliatto Leite, the bank's executive director for Brazil. This projection was shared at an event organized by XP Private Bank in Miami. Leite noted that current monetary policy is already impacting the labor market and services sector. He highlighted the potential positive contributions of the agricultural and oil sectors to Brazil's GDP but cautioned about uncertainties arising from the Trump administration in the United States, particularly concerning finances and trade flows. Meanwhile, in Argentina, the Central Bank's international reserves have decreased to $26.626 billion, the lowest since February 2024. This decline follows the Central Bank's sale of $196 million in foreign exchange market intervention. Market anxiety stems from the lack of a finalized agreement with the International Monetary Fund (IMF) and speculation about changes to the exchange rate regime. The government expects these concerns to ease following an upcoming IMF meeting where a new loan for Argentina will be discussed. Bloomberg reported a potential disbursement of $20 billion to capitalize the Central Bank, though the final amount remains subject to negotiation. This meeting follows the approval by the Chamber of Deputies of President Javier Milei's decree supporting a new agreement with the IMF.