In the second quarter, GDP expanded a seasonally adjusted 0.8% over the previous quarter, which was below the revised 1.2% increase seen in the first quarter (previously reported: +1.3% quarter-on-quarter) but was in line with market expectations. Compared to the same quarter last year, the economy added 3.1% (Q1: +4.2% year-on-year). Domestic demand continued to support economic growth. Private consumption accelerated from 0.7% qoq in Q1 to 1.0% in Q2 while fixed investment grew 1.7% in the second quarter, up from the 1.0% expansion in the first. The deceleration in economic growth over the previous quarter mainly reflected a sharp rebound in imports, boosted by the strong Brazilian real. Consequently, the net contribution from the external sector to overall growth deteriorated significantly. Exports of goods and services rebounded from a 3.1% contraction in the first quarter to a 2.3% increase in the second, while imports added 6.1% in the second quarter, contrasting the 1.4% decline in the first. As a result, the net contribution from the external sector to overall economic growth deteriorated from minus 2.9 percentage points in the first quarter to minus 5.9 percentage points in the second. At the sector level, services drove the economic expansion in the second quarter by adding 0.8% (Q1: +0.7% qoq). The industrial sector deteriorated notably and slowed from 2.2% growth in the first quarter to 0.2% in the second, dragged by weaker manufacturing. The agricultural sector contracted 0.1% in the second quarter (Q1: +2.9% qoq). The Central Bank expects GDP to grow 4.5% in 2011.
Economy slows in the second quarter
September 2, 2011
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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.