Brazil Avoids Recession in Q3

The Brazilian economy expanded 0.1 percent on quarter in the three months to September of 2014, pulling out from a first-half contraction, supported by increase in public spending and investment.

Government expenditure increased 1.3 percent in the third quarter, after contracting 0.5 percent in the previous period. Gross fixed capital formation expanded 1.3 percent, recovering from a 5.2 percent drop in the second quarter.  Imports advanced 2.4 percent (-1.8 percent in Q2) while exports rose 1 percent (3 percent in Q2). Meanwhile, consumer spending fell 0.3 percent after being flat in the previous period.

In the second quarter of 2014, the GDP shrank 0.6 percent, following a 0.2 percent drop in the first three months of the year, bringing the year-to-date growth to 0.2 percent.

Joana Taborda |
11/28/2014 12:59:18 PM