Brazil GDP Shrinks 2.6% YoY in Q2

The Brazilian economy contracted 2.6 percent year-on-year in the second quarter of 2015. It is the fifth straight period of contraction due to a slump in domestic consumption and investment.

Gross fixed capital formation recorded the highest drop (-11.9 percent), down for the fifth straight period. Household consumption shrank 2.7 percent and government spending dropped 1.1 percent. In contrast, exports increased 7.5 percent while imports fell 11.7 percent. 

On the expenditure side, manufacturing, utilities and construction contracted for the fifth straight quarter by -8.3 percent, -4.7 percent and -8.2 percent respectively. On the other hand, mining went up 8.1 percent. In addition, the services sector fell 1.4 percent while agriculture rose 1.8 percent. 

On a quarterly basis, the economy contracted 1.9 percent, the worst performance since the last quarter of 2008.

Brazil GDP Shrinks 2.6% YoY in Q2

Joana Taborda |
8/28/2015 2:23:11 PM