Brasil Taxa de Crescimento do PIB

The Brazilian gross domestic product expanded by 0.4% from the previous quarter in the three months to June of 2025, easing from the downwardly revised 1.3% in the earlier quarter, but marginally higher than market expectations of a 0.3% expansion. The expansion was led by household consumption (0.5% vs 1% in Q1 2025), extending the period of robust spending by individuals attributed to large fiscal support for households in earlier programs, which offset the high real interest rates by the central bank. In the meantime, government consumption contracted by 0.6% following an unchanged reading in Q1. In the meantime, exports rose by 0.7%, likely due to shipments of raw materials to the US as foreign companies front-loaded trade to avoid tariffs. Further, imports plunged by 2.9% to drive a strong support from net external demand to the GDP.