Brazilian Economy Expands 3.3% YoY in Q2

In the second quarter of 2013, Brazilian GDP grew at its fastest pace in two years, beating market expectations. The economy expanded 3.3 percent year-on-year, from 1.9 percent in the previous three-month period, boosted by higher investment and agricultural production.

On the expenditure side, agriculture and livestock activities recorded the highest growth rate (up by 13 percent yoy), due to higher production of soybean, corn, beans and rice. Mining shrank by 3.9 percent yoy, while manufacturing grew 4.6 percent. Construction activities went up by 4 percent and electricity, gas and water production expanded 2.1 percent over the same quarter of the previous year. Services increased 2.4 percent, mainly boosted by retail trade. 

On the expenditure side, gross fixed capital formation increased the most in the second quarter. Investment growth rate accelerated to 9 percent, from 3 percent in the previous quartet. While household consumption expanded 2.3 percent, from 2.1 percent in the first quarter, public spending shrank by 1 percent. Exports expanded at a slower pace than imports (6.3 percent and 7.9 percent, respectively). 

Quarter-on-quarter, the GDP grew a seasonally adjusted 1.5 percent in the second quarter, the fastest pace in three years.

Brazilian Economy Expands 3.3% YoY in Q2

Joana Taborda |
8/30/2013 1:29:31 PM