The Brazilian GDP expanded by 0.8% in the first quarter of 2024, rebounding from the revised 0.1% contraction in the fourth quarter of 2023 and in line with market expectations. It reflected some traction in the Brazilian economy after two periods of muted-to-negative growth, largely due to increased government transfers in President Lula’s second year in office, which helped consumers’ spending power offset the elevated real interest rates set by the Brazilian central bank. Growth was carried by a sharp expansion in the agricultural sector (11.3%) to rebound from the contraction in the earlier quarter, although harvests fell short of last year’s records. Meanwhile, services grew by 1.4%, with government transfers lifting commerce (3%) and communication output (2.1%). On the other hand, the industrial sector notched a slight contraction (-0.1%), pressured by competition from export markets. From the previous year, the Brazilian GDP expanded by 2.5% in the first quarter. source: Instituto Brasileiro de Geografia e Estatística (IBGE)
The Gross Domestic Product (GDP) in Brazil expanded 0.80 percent in the first quarter of 2024 over the previous quarter. GDP Growth Rate in Brazil averaged 0.57 percent from 1996 until 2024, reaching an all time high of 8.00 percent in the third quarter of 2020 and a record low of -9.00 percent in the second quarter of 2020. This page provides - Brazil GDP Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Brazil GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2024.
The Gross Domestic Product (GDP) in Brazil expanded 0.80 percent in the first quarter of 2024 over the previous quarter. GDP Growth Rate in Brazil is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Brazil GDP Growth Rate is projected to trend around 1.00 percent in 2025, according to our econometric models.
Brazil GDP Growth Rate
Brazil is the tenth largest economy in the world and the biggest in Latin America. The services sector is the most important and accounts for 63 percent to total GDP. The biggest segments within services are: government, defense, education and health (15 percent of total GDP); other services (15 percent); wholesale and retail trade (11 percent); real estate (8 percent); and financial services (7 percent). Also, industry contributes to 18 percent of GDP, with manufacturing (11 percent) and construction (4 percent) accounting for the largest share. The agriculture and livestock sector accounts for 5 percent of GDP. On the expenditure side, household consumption is the main component of GDP and accounts for 63 percent of its total use, followed by government expenditure (20 percent) and gross fixed capital formation (16 percent). Exports of goods and services account for 13 percent of GDP while imports account for 12 percent, adding 1 percent of total GDP.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 0.80 | -0.10 | 8.00 | -9.00 | 1996 - 2024 | percent | Quarterly |
News Stream
Brazilian GDP Rebounds as Expected
The Brazilian GDP expanded by 0.8% in the first quarter of 2024, rebounding from the revised 0.1% contraction in the fourth quarter of 2023 and in line with market expectations. It reflected some traction in the Brazilian economy after two periods of muted-to-negative growth, largely due to increased government transfers in President Lula’s second year in office, which helped consumers’ spending power offset the elevated real interest rates set by the Brazilian central bank. Growth was carried by a sharp expansion in the agricultural sector (11.3%) to rebound from the contraction in the earlier quarter, although harvests fell short of last year’s records. Meanwhile, services grew by 1.4%, with government transfers lifting commerce (3%) and communication output (2.1%). On the other hand, the industrial sector notched a slight contraction (-0.1%), pressured by competition from export markets. From the previous year, the Brazilian GDP expanded by 2.5% in the first quarter.
2024-06-04
Brazilian GDP Stalls for 2nd Quarter
The Brazilian gross domestic product stalled in the fourth quarter of 2023, extending the revised third-quarter print that also reflected a stall, and missing market expectations of a 0.1% increase. It reflected the first back-to-back quarters without growth since the pandemic-driven economic crisis in the first half of 2020, strengthening the argument for doves in the Central Bank of Brazil and aligning with the central bank’s guidance of repeated rate cuts. Among different industries, the key agricultural sector plummeted by 5.3% from the third quarter, enough to fully offset the expansions for industry (1.3%) and services (0.3%). The GDP expanded by 2.1% compared to the corresponding quarter of the previous year, notching a 2.9% expansion during the whole of 2023.
2024-03-01
Brazilian Economy Escapes Contraction
The Brazilian economy unexpectedly rose 0.1% on quarter in Q3 2023, slowing sharply from a strong expansion in the first half of the year, but escaping a 0.2% contraction markets were forecasting. The industrial sector rose 0.6%, with both manufacturing and mining adding 0.1% while utilities soared 3.6%. Services also gained 0.6%, with financial, insurance (1.3%) and real estate (1.3%) recording the biggest increases. On the other hand, the output from agriculture shrank 3.3%, as the soybean crop which is the largest in Brazil, is concentrated on the first half of the year. On the demand side, both household (1.1%) and government expenditure (0.5%) increased, boosted by public income transfer programs and a continued improvement in the job market. Also, exports remained robust (3%) and imports went down (-2.1%). In contrast, gross fixed capital formation fell for a fourth consecutive quarter (-2.5%) as high interest rates continue to weigh on construction investment and capital goods.
2023-12-05
