Brazil GDP Shrinks 2.9% YoY in Q3

The Brazilian economy contracted 2.9 percent year-on-year in the third quarter of 2016, following a downwardly revised 3.6 percent decrease in the previous period and better than market expectations of a 3.2 percent drop. It is the 10th straight quarter of contraction, hurt by internal demand and a slowdown in exports.

On the expenditure side, household spending fell 3.4 percent (-4.8 percent in Q2), government consumption declined 0.8 percent (-0.5 percent in Q2) and gross fixed capital formation shrank 8.4 percent (-8.6 percent in Q2). Exports rose a meager 0.2 percent (4 percent in Q2) and imports declined 6.8 percent (-10.4 percent in Q2).

On the production side, declines were recorded for agriculture (-6 percent compared to -6.1 percent); mining (-1.3 percent compared to -5.1 percent); manufacturing (-3.5 percent compared to -4.7 percent); construction (-4.9 percent compared to -3.2 percent) and services (-2.2 percent compared to -2.7 percent). Only utilities output (+4.3 percent compared to 8.7 percent), real estate activities (+0.1 percent compared to 0.3 percent) and public education and health (0.1 percent compared to 0.5 percent) increased.

On a quarterly basis, the economy shrank 0.8 percent, worse than a 0.4 percent contraction in the previous period. 

Brazil GDP Shrinks 2.9% YoY in Q3

IBGE | Joana Taborda |
11/30/2016 12:42:21 PM