Brazilian Economy Grows 1% YoY in Q2

The Brazilian economy expanded 1.0 percent year-on-year in the second quarter of 2019, following a 0.5 percent growth in the previous period and beating market consensus of 0.7 percent. The services sector continued to grow and agricultural and industrial activities rebounded, as construction output rose for the first time since the first quarter of 2014.
IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com 8/29/2019 2:53:35 PM
On the production side, services activities advanced 1.2 percent, the same pace as in the first quarter of the year, of which information and communication (3.0 percent vs 3.8 percent), other service activities (1.6 percent vs 1.4 percent), trade (2.1 percent vs 0.5 percent), financial, insurance and related services activities (-0.3 percent vs 0.3 percent), public health, education and social security (-0.1 percent vs 0.5 percent), transport and storage (0.3 percent vs 0.2 percent), and real estate activities (2.7 percent vs 3.0 percent). Additionally, the industrial sector grew 1.2 percent (the same as in Q1), mostly driven by manufacturing (1.6 percent vs -1.7 percent) and construction (2.0 percent vs -2.2 percent). In contrast, mining output dropped 9.4 percent, the sharpest decline on record, after falling 3.0 percent in the prior period and growth slowed in utilities (2.4 percent vs 4.7 percent). Also, agriculture output went up 0.4 percent, rebounding from a 0.1 percent contraction. 

On the expenditure side, household expenditure rose 1.6 percent, higher than a 1.3 percent increase in the frist three months of 2019 and fixed investment jumped 5.2 percent (vs 0.9 percent in Q1). Meanwhile, government spending went down 0.2 percent, after increasing 0.1 percent in the previous quarter.  Exports rose 1.8 percent (vs 1.0 percent in Q1) and imports advanced 4.7 percent (vs -2.5 percent in Q1).

On a quarterly basis, the economy grew 0.4 percent, after shrinking a downwardly revised 0.1 percent in the first three months of the year and also beating market forecasts of a 0.2 percent expansion.

Brazilian Economy Grows 1% YoY in Q2