Brazil GDP Growth Beats Expectations in Q4


In the last three months of 2013, Brazilian economy advanced 1.9 percent over a year earlier, beating market expectations, but slowing from a 2.2 percent expansion in the previous quarter. Recession fears were allayed as the economy advanced 0.7 percent on a quarter basis.

Year-on-year, agricultural output rose 2.4 percent recovering from last quarter’s contraction, boosted by higher production of wheat (30.4 percent yoy), sugar cane (10.0 percent yoy) and tobacco (5.5 percent yoy), whereas orange (-14.8 percent yoy) and cassava (-9.5 percent yoy) fell.

Manufacturing increased 1.3 percent, slowing from 1.9 percent in the previous quarter. Growth was driven by higher production of machines, electronic and transport equipment, perfumes, oil and wood products. Construction rose at the same pace as in the previous quarter (2.4 percent); electricity, water and gas supply expanded 3.4 percent (3.7 percent in Q3) and mining advanced 0.7 percent, slightly up from 0.9 percent in the September quarter. The services sector grew 1.8 percent yoy. 

On the expenditure side, exports recorded the highest annual growth rate (5.6 percent), accelerating from a 3.1 percent expansion in the previous quarter. 

Gross fixed capital investment rose 5.5 percent on the year (slowing from 7.3 percent in Q3), boosted by higher production of capital goods. Imports slowed to 4.8 percent, household consumption to 1.9 percent and government spending to 2 percent.  

Growth for the full year accelerated to 2.3 percent, better than 1.0 percent in 2012, led by 2 percent rise in services, 1.3 percent growth in industrial production and 6.3 percent in fixed capital formation.

Brazil GDP Growth Beats Expectations in Q4


Joana Taborda | joana.taborda@tradingeconomics.com
2/27/2014 12:38:28 PM