Brazil GDP Grows a Meager 0.1% in Q3


The Brazilian economy advanced 0.1 percent on quarter in the third quarter of 2017, following an upwardly revised 0.7 percent growth in the previous period and below market expectations of 0.3 percent. It is the smallest expansion in three quarters after a 2-year recession.

Household spending rose 1.2 percent, the same as in the previous period and gross fixed capital formation went up 1.6 percent, the most in four years after stalling in the previous quarter. On the other hand, government spending shrank 0.2 percent, following a 0.1 percent fall in the previous period. Exports rose 4.1 percent (1.2 percent in Q2) and imports jumped 6.6 percent, recovering from a 3.4 percent fall in the previous period. 

On the production side, the industrial sector recovered (0.8 percent compared to -0.4 percent) mainly due to a rebound in utilities (0.1 percent compared to -2 percent); mining (0.2 percent compared to -0.2 percent) and manufacturing (1.4 percent compared to 0.2 percent) while construction stalled (-1.9 percent in Q2). Services rose slightly less (0.6 percent compared to 0.8 percent), namely internal trade (1.6 percent compared to 2.2 percent) and agriculture shrank 3 percent (-2.3 percent).

Growth figures for Q2 2017 were revised up to 0.7 percent from 0.2 percent and for Q1 2017 to 1.3 percent from 1 percent. 

Year-on-year, the economy advanced 1.4 percent, following an upwardly revised 0.4 percent rise in the previous quarter and better than forecasts of 1.3 percent. It is the fastest growth rate since the first quarter of 2014.

Brazil GDP Grows a Meager 0.1% in Q3


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
12/1/2017 11:42:15 AM