Brazil GDP Contracts 0.6% QoQ in Q2

The Brazilian economy shrank 0.6 percent on quarter in the three months to June of 2016, following an upwardly revised 0.4 percent decline in the previous period and worse than market expectations of a 0.5 percent drop. It is the sixth straight quarter of contraction although investment rose for the first time in nearly three years.

On the expenditure side, household spending went down 0.7 percent, following a 1.3 percent drop in the previous quarter. Government consumption was down 0.5 percent, reversing from a 1 percent rise in the previous quarter. 

In contrast, gross fixed capital formation went up 0.4 percent, the first gain since the third quarter of 2013. Exports increased for the second straight quarter, up 0.4 percent, following a 4.3 percent rise in the previous period. Imports rose 4.5 percent, the first gain in five quarters.

Year-on-year, the GDP shrank 3.8 percent. 

Brazil GDP Contracts 0.6% QoQ in Q2

IBGE | Joana Taborda |
8/31/2016 4:34:42 PM