Brazil: Economic growth tops expectations for third month in a row in March
Latest reading: The Brazilian economy powered through at the end of the first quarter. Economic activity—a proxy for GDP—increased 0.8% in month-on-month seasonally adjusted terms in March, above February’s upwardly revised 0.5% increase. March’s improvement smashed market expectations for a third month running. Looking at the details of the release, the monthly acceleration was due to a faster rise in the services sector—which accounts for roughly 60% of GDP—and a rebound in the industrial sector, which grew at the strongest clip since December 2023.
On an annual basis, economic activity increased 3.5% in March, which was below February’s 4.1% expansion. Meanwhile, annual average economic activity growth rose to 4.2% in March (February: +3.8%), pointing to an improving trend.