Brazil GDP Contracts 0.9% YoY in Q2

Brazilian economy contracted 0.9 percent year-on-year in the second quarter of 2014, down from a revised 1.9 percent expansion in the first three months of the year. A sharp drop in manufacturing and construction output accounted the most for the contraction as activity slowed in many factories during the World Cup 2014.

The industrial sector fell 3.4 percent, hurt by a 5.5 percent drop in manufacturing (lower production of automobiles, machines and equipment, furniture, metal products, plastics, rubber and wood). The construction sector shrank 8.7 percent while mining expanded 8 percent. Retail and wholesale trade fell 2.4 percent while information services grew 2.5 percent. 

On the expenditure side, gross fixed capital formation fell sharply by 11.2 percent while exports increased at a slower 1.9 percent.

On a quarter-on-quarter seasonally adjusted basis, the economy contracted for the second consecutive period by 0.6 percent in the April to June quarter, following a revised 0.2 percent drop in the first three months of the year.

Considering the first half of 2014, the economy expanded 0.5 percent over the same period in 2013.

Brazil GDP Contracts 0.9% YoY in Q2

IBGE | Joana Taborda |
8/29/2014 2:16:12 PM