Exports jumped 4.8 percent (-1 percent in Q4), the most in 2 years, after four straight quarters of declines as sales of oil, iron ore and soybeans grew. Imports increased 1.8 percent, slowing from a 3.5 percent rise in Q4. Consumer spending edged down 0.1 percent (-0.5 percent in Q4), dropping the least in nine quarters. On the other hand, gross fixed capital formation went down 1.6 percent, the same as in the previous period, contracting for a third straight quarter as investors remain cautious amid continued political scandals and higher borrowing cost. Also, government spending fell 0.6 percent, the most since Q4 of 2015, after a flat reading in the previous period as the government of Michel Temer reduced fiscal spending.
On the production side, agriculture grew 13.4 percent recovering from 0.2 percent contraction in Q4 amid record harvest. Also, industry rebounded (0.9 percent from -0.9 percent in Q4). Still, services were flat, with retail trade falling 0.6 percent (-1.1 percent in Q4).
Year-on-year, the economy contracted 0.4 percent, the least in two years.