Brazil Economic Growth Disappoints in Q1

In the first three months of 2013, Brazilian GDP grew only 1.9 percent yoy. While industry contracted, expansion was boosted by strong activity in agriculture and slight increase in services.
Duarte Ricardo | 5/29/2013 3:16:40 PM
The 1.4 percent drop in the industrial sector was mainly driven by 6.6 percent decline in mining. Manufacturing decreased by 1.3 percent, yet production of motor vehicles, other transport equipment, machinery and electrical appliances and furniture increased. Construction contracted  0.7 percent.

The services sector grew 1.9 percent, with all its activities recording expansion.

The agricultural activity grew 17 percent supported by a strong harvest of soy (+23%), corn (+9.1%), tobacco (+5.7%) and rice (+5.1%).

On the demand side, household consumption increased 2.1 percent, driven by a 3.2 percent rise in salaries.  Public consumption expanded only 1.6 percent. After falling throughout 2012, investment grew 3 percent. Exports dropped 5.7 percent while imports increased 7.4 percent.

On a quarter-over-quarter basis, the economy grew 0.6 percent.

Brazil Economic Growth Disappoints in Q1