Brazil Quarterly GDP Growth Picks Up to 0.2% in Q2


The Brazilian economy grew by 0.2 percent on quarter in the three months to June 2018, following a downwardly revised 0.1 percent advance in the previous period and slightly beating market expectations of 0.1 percent. The slight expansion was sharply impacted by nationwide truckers strikes in May and June, which led to the first fall in investment in more than a year and the biggest decline in exports since the last quarter of 2014.

The second quarter expansion was driven by public spending (0.5 percent vs -0.3 percent in Q1) and household consumption (0.1 percent vs 0.4 percent). However, fixed investment contracted 1.8 percent, after a 0.3 percent advance in the previous period; and net external demand contributed negatively to the GDP growth as exports slumped 5.5 percent (vs 1.8 percent in Q1) and imports fell at a slower 2.1 percent (vs 0.8 percent in Q1).

From the production side, services output rose by 0.3 percent in the second quarter, following a 0.1 percent increase in the precedent three-month period, boosted by growth in: information & communication services (1.2 percent vs -1.1 percent); real estate activities (1.2 percent vs 0.4 percent); financial & insurance activities (0.7 percent vs -0.2 percent); and other service activities (0.7 percent vs 0.6 percent). By contrast, a contraction was recorded for transport, storage & post (-1.4 percent vs 0.6 percent); trade (-0.3 percent vs 0.1 percent); and public administration, defense, education, health (-0.2 percent vs 0.1 percent).

Meanwhile, industry output shrank 0.6 percent after a 0.1 percent gain in the first quarter, as output declined for both manufacturing (-0.8 percent vs -0.4 percent) and construction (-0.8 percent vs -0.4 percent), while growth was recorded for utilities (0.7 percent vs 2.3 percent) and mining (0.4 percent, the same as in Q1). Agriculture output was unchanged in the second quarter after an increase of 1.3 percent in the previous period.

Brazil Quarterly GDP Growth Picks Up to 0.2% in Q2


IBGE | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/31/2018 2:11:26 PM