Brazilian Economy Slides Into Recession

Brazilian GDP contracted a seasonally adjusted 0.6 percent in the second quarter of 2014, hurt by a fall in investment and government expenditure. Growth figures for the first three months of the year were revised to show a 0.2 percent fall instead of a 0.2 percent expansion.

On the expenditure side, household consumption grew 0.3 percent, rebounding from a 0.2 percent fall in the first quarter. Exports increased 2.8 percent, following a 3.8 percent drop in the previous period. Gross fixed capital formation contracted for the fourth straight quarter by 5.3 percent, after shrinking by 2.8 percent tin the first there months of the year. Government consumption fell 0.7 percent (+0.4 percent in Q1) and imports contracted 2.1 percent. 

On the production side, the construction sector fell the most (-2.9 percent), followed by manufacturing (-2.4 percent), retail trade (-2.2 percent) and electricity, water and gas supply (-1 percent).

Year-on-year, the GDP shrank 0.9 percent in the April to June period, following a 1.9 percent expansion in the first three months of 2014. 

Brazilian Economy Slides Into Recession

IBGE | Joana Taborda |
8/29/2014 1:25:14 PM