Brazilian GDP Grows Below Expectations in Q3


In the third quarter of 2013, Brazil’s GDP growth slowed to a weaker-than-expected 2.2 percent year-on-year, after expanding 3.3 percent in the previous three-month period. A surge in government spending was not enough to offset a slowdown in exports and investment.

On the production side, agriculture contracted 1 percent over a year earlier, after posting double-digit growth rates in the previous two quarters. In contrast, mining recovered from a 4.1 percent contraction in the June quarter and advanced 0.7 percent yoy. Electricity, water and gas production accelerated 3.7 percent, from 2.1 percent in the second quarter. Manufacturing decelerated to 1.9 percent (4.5 percent in the second quarter) and construction slowed to 2.4 percent (from 4 percent in the previous three-month period). Transportation, storage and postal services recorded the highest annual growth rate (5 percent yoy), followed by the information services (4.6 percent yoy). The retail sector slowed to 2.4 percent, 1 percent lower than in the previous quarter and real estate activities eased to 2.1 percent.

On the expenditure side, only government spending and imports accelerated in the third quarter. Government consumption advanced 2.3 percent, from 0.8 percent in the previous three-month period and imports surged 13.7 percent (7.7 percent in the second quarter). In contrast, household consumption slightly eased to 2.3 percent yoy, while investment and exports slowed to 7.3 percent and 3.1 percent, respectively (from 9.1 percent and 6.3 percent respectively in the previous three-month period).

Quarter-on-quarter, the GDP contracted a seasonally adjusted 0.5 percent, the worst rate in the last four years.

Brazilian GDP Grows Below Expectations in Q3


Joana Taborda | joana.taborda@tradingeconomics.com
12/3/2013 11:30:21 AM