Brazil GDP Contracts Again in Q3

The Brazilian economy contracted 0.2 percent year-on-year in the third quarter of 2014, following a 0.9 percent drop in the previous period. A rise in government spending and exports was not enough to offset a drop in investment and slowing consumption.

On the expenditure side, gross fixed capital formation contracted for the third straight period by 8.5 percent while consumer spending rose a meager 0.1 percent. Public expenditure increased 1.9 percent, accelerating from a 0.9 percent rise in the previous quarter. Exports grew 3.8 percent (1.9 percent in Q2) and imports rose 0.7 percent, rebounding from a 2.4 percent decline in the second quarter.

The industrial sector shrank by 1.5 percent, second consecutive quarter of decline. Construction recorded the highest drop (-5.3 percent), followed by manufacturing (-3.6 percent). In contrast, mining output rose 8.2 percent. The services sector expanded 0.5 percent, but trade contracted 1.8 percent. 

On a quarter-on-quarter seasonally adjusted basis, the economy grew 0.1 percent.

Brazil GDP Contracts Again in Q3

Joana Taborda |
11/28/2014 12:55:42 PM