Brasil Taxa de Crescimento do PIB

The Brazilian GDP expanded by 1.4% from the previous quarter in the three months ending June of 2024, gaining traction following the upwardly revised 1% expansion in the first quarter, and well above the market consensus of a 0.9% increase. The result extended the stronger momentum for the Brazilian economy following the muted momentum in the end of 2023, strengthening the argument for hawks in the Brazilian central bank to deliver a rate hike. Private consumption rose by 1.3% amid the elevated level of government transfers in the year, aligned with the 1.3% growth in government expenditure. In the meantime, gross fixed capital formation rose by 2.1%. On the other hand, net foreign demand contributed negatively to the GDP, as imports soared by 7.6%, while lower prices for key Brazilian commodities drove exports to rise a softer 1.4%. From the corresponding period of the previous year, the Brazilian GDP rose by 3.3% in the second quarter of the year.