In the third quarter, GDP increased 0.5% over the previous quarter in seasonally adjusted terms. The reading, which followed a 1.8% rise in the second quarter (previously reported: +2.7% quarter-on-quarter), came in above market expectations of 0.4% growth. On a year-on-year basis, the economy expanded 6.8% in Q3. The deceleration over the previous quarter was mostly driven by flat public consumption growth in the third quarter (Q2: +1.9% quarter-on-quarter), as well as decelerating investment (Q2: +4.3% qoq; Q3: +3.9% qoq). On the other hand, growth in private consumption accelerated, adding 1.6% in the third quarter, up from the 0.9% increase experienced in the second quarter. In the external sector, growth in imports continued to outpace exports. Exports expanded 2.4% in the third quarter (Q2: +0.1% qoq), while imports accelerated from a 5.8% increase in the second quarter to a 7.4% expansion in the third quarter. A negative contribution from the external sector to overall economic growth is a common symptom of a domestic demand-led growth pattern, which has been the case for the last few years. At the sector level, the deceleration was widespread, as growth slowed in all major sectors. Agriculture led the way with a contraction of 1.5% over the previous quarter (Q2: +2.1% qoq). Industrial output declined 1.3% in the third quarter (Q2: +2.0% qoq), while services, which account for two thirds of GDP, added 1.0% in the third quarter, down from a 1.2% expansion in Q2. The Central Bank currently estimates GDP to grow 4.5% in 2011.
Economic growth slows in third quarter
December 9, 2010
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Brazil Economic News
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.
October 3, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in September, increasing from August’s 45.7 to 46.0.