Brazil GDP Contracts For 7th Quarter


The Brazilian economy shrank 0.8 percent on quarter in the three months to September of 2016, in line with market expectations. It is the seventh straight quarter of contraction as consumer spending continued to fall and public expenditure and investment shrank.

Consumer spending went down 0.6 percent, following a 1 percent fall in the previous three months, marking the seventh straight quarter of declines. Public expenditure declined 0.3 percent after being flat in the previous quarter and gross fixed capital formation shrank 3.1 percent after rising 0.5 percent in the previous period, the first gain in more than two years . In addition, exports fell at a faster 2.8 percent (-1.8 percent in the previous period) and imports came back to contraction (-3.1 percent compared to 2.8 percent in the previous period).

On the production side, industrial output came back to contraction (-1.3 percent compared to 1.2 percent in the previous period), due to a slump in manufacturing (-2.1 percent from 0.1 percent), utilities (-0.2 percent from 1.2 percent) and construction (-1.7 percent from -1.5 percent) while mining rose 3.8 percent (1.4 percent in the previous period). Services shrank 0.6 percent, the same as in the previous period, marking the seventh straight quarter of decline. Agriculture fell 1.4 percent (-0.8 percent in the previous period). 

Contraction for the second quarter was revised down to 0.4 percent from 0.6 percent.

Year-on-year, the economy shrank 2.9 percent, compared to expectations of a 3.2 percent decline. 

IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
11/30/2016 12:07:49 PM