The city on the beach in Brazil

Brazil GDP Q3 2022

Brazil: GDP grows at softest pace since Q2 2021 in Q3

Underlying momentum strengthened at a softer pace in the third quarter of 2022, with GDP growth waning to 0.4% on a seasonally adjusted quarter-on-quarter basis, from 1.0% in the second quarter. Q3’s reading marked the weakest print since Q2 2021 and surprised analysts on the downside; they had penciled in a 0.6% expansion. Meanwhile, on an annual basis, economic growth moderated to 3.6% in Q3, from the previous period’s 3.7% growth.

Domestically, the quarterly moderation was spearheaded by weaker private consumption and investment growth. Household spending increased a quarterly 1.0% in seasonally adjusted terms in the third quarter, which was below the second quarter’s 2.1% expansion. The lower unemployment rate (Q3: 8.9%; Q2: 9.9%) and average inflation easing to 8.6% in Q3 (Q2: 11.9%) likely supported households’ budgets and prevented a sharper deceleration in spending. Additionally, fixed investment growth moderated to 2.8% in Q3, from 3.8% in the prior quarter. More positively, public consumption rebounded, growing 1.3% in Q3 (Q2: -0.9% s.a. qoq).

Turning to the external sector, exports of goods and services rebounded, growing 3.6% in Q3 (Q2: -2.8% s.a. qoq). Conversely, imports of goods and services growth slowed to 5.8% in Q3 (Q2: +8.7% s.a. qoq). Consequently, the external sector neither contributed nor detracted from overall growth, an improvement from the prior quarter’s 0.4 percentage point detraction.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest