Brazil's Economic Growth Surprises in Q4

Brazilian GDP expanded 0.3 percent on quarter in the three months to December of 2014 compared to upwardly revised 0.2 percent growth in the previous period. Better than expected expansion was driven by consumer spending while investment, government expenditure and exports declined.
IBGE | Carolina Cunha | 3/27/2015 1:06:50 PM
On the expenditure side, consumer spending rose 1.1 percent, up from a 0.4 percent growth in the third quarter. On the other hand, government spending decreased 0.6 percent in the fourth quarter, after advancing 0.9 percent in the previous period. Exports fell 12.3 percent (+1.4 percent in Q3) while imports went down 5.5 percent (+2.5 percent). Meanwhile, gross fixed capital formation declined 0.4 percent, closing 2014 with negative results in all the quarters as high interest rates depressed investment. 

On the production side, agriculture expanded 1.8 percent, slowing from a 3.6 percent increase in the previous quarter. The services sector rose at a slower 0.3 percent pace and industry sector shrank 0.1 percent. 

Year-on-year, the economy contracted 0.2 percent, following a downwardly revised 0.6 percent drop in the previous quarter