Brazil GDP Shrinks 3.8% YoY in Q2

The Brazilian economy contracted 3.8 percent year-on-year in the second quarter of 2016, following a 5.4 percent decline in the previous period and slightly worse than market expectations of a 3.7 percent drop. It is the 9th straight quarter of contraction, hurt by internal demand.

On the expenditure side, household spending fell 5 percent, government consumption declined 2.2 percent and gross fixed capital formation shrank 8.8 percent. Exports rose 4.3 percent and imports declined 10.6 percent.

On the production side, declines were recorded for agriculture (-3.1 percent); mining (-4.9 percent); manufacturing (-5.4 percent); construction (-2.2 percent) and services (-3.3 percent). Only utilities output (+7.9 percent) and real estate activities (+0.1 percent) increased.

On a quarterly basis, the economy shrank 0.6 percent, worse than a 0.4 percent contraction in the previous period. 

Brazil GDP Shrinks 3.8% YoY in Q2

IBGE | Joana Taborda |
8/31/2016 4:30:20 PM