Brazil anticipates higher growth and more inflation due to oil price surge from Iran war
The Brazilian government anticipates that the rise in oil prices caused by the war in Iran will have mixed effects on the country's economy in 2026, with a possible increase in GDP growth, but also higher inflation, according to a study released this Friday. In the most likely scenario, with a moderate and temporary 11% increase in the Brent crude price to about $73, the government estimates that Brazilian GDP growth could increase by an additional 0.10 percentage points in 2026, while inflation would rise by an additional 0.14 points, according to the Ministry of Finance study. In this case, Brazilian growth would reach 2.4% in 2026, above the initially projected 2.3%, while inflation would stand at 3.8%, compared to the 3.7% forecast so far, according to the calculations.