Brazil: Growth continues to disappoint in the third quarter
November 30, 2012
In the third quarter, GDP increased 0.6% over the previous quarter in seasonally adjusted terms. The figure was above the 0.2% expansion observed in the second quarter (previously reported: +0.4% quarter-on-quarter) but came in well below market expectations of a 1.2% rise. Compared to the same quarter last year, the economy added 0.9%, up from the 0.5% increase tallied in Q2 and below market expectations of a 1.9% rise. On the domestic side, private consumption expanded 0.9% over the previous quarter (Q2: +0.7% qoq), while government consumption added a meagre 0.1% (Q2: +1.0% qoq). Fixed investment, on the other hand, fell for the fifth consecutive quarter and contracted 2.0% (Q2: -1.6% qoq), the largest drop in more than three years. On the external side of the economy, exports of goods and services rose 0.2%, which contrasted the 3.5% decline seen in Q2. Imports, however, declined 6.5% (Q2: -1.5% qoq).