Brazil: Economic growth remains modest in the second quarter
August 31, 2012
In the second quarter, GDP increased 0.4% over the previous quarter in seasonally adjusted terms. The figure was above the 0.1% expansion observed in the first quarter (previously reported: +0.2% quarter-on-quarter) but came in below market expectations of a 0.5% rise. Compared to the same quarter last year, the economy added 0.5%, down from the 0.8% increase tallied in Q1 and below market expectations of a 0.7% rise. On the domestic side, fixed investment contracted 0.7% over the previous quarter, which was less than the 1.5% decline observed in the first quarter. Private consumption expanded a modest 0.6%, down from the 0.9% increase seen in Q1. Finally, government spending rose a stronger 1.1% in the second quarter, which was nevertheless below the 1.6% expansion seen in the first quarter. On the external side of the economy, exports of goods and services declined 3.9%, a deterioration over the 0.3% decrease tallied in Q1. Imports, on the other hand, rebounded from a 0.4% contraction in the first quarter to a 1.9% expansion in the second.