Brazil's Economy Growth Unexpectedly Quickens to 6.1%

Brazil's economic growth unexpectedly accelerated in the second quarter. Gross domestic product, the broadest measure of a country's production of goods and services, jumped 6.1 percent from a year earlier., 9/26/2008 12:22:16 PM

Capital investment in the second quarter jumped 6.2 percent on an annual basis, the most since the second quarter of 1995. Household spending grew 6.7 percent after a 6.6 percent expansion in the first quarter. The volume of exports expanded 5.1 percent in the period, reversing a 21 percent decline in the first quarter.

There are signs that parts of the economy are slowing because of the central bank rate increases since April. Vehicle sales grew 4 percent in August from a year ago, the slowest pace in almost two years, after car loan costs jumped, the industry association said Sept. 4.

The second-quarter growth rate was the second highest since the second quarter of 2004 when the economy grew 7.5 percent. Brazil's GDP grew 6.2 percent in the last quarter of 2007.

From the first quarter of 2008, the economy expanded 1.6 percent, the statistics agency said on September 10.