Brazil Q2 GDP Growth Beats Forecasts

The Brazilian economy advanced 0.4 percent on quarter in the three months to June 2019, after a downwardly revised 0.1 percent contraction in the prior period and above market expectations of a 0.2 percent expansion. Growth was mainly boosted by industrial and services activities while agricultural output declined.
IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com 8/29/2019 1:15:59 PM
On the production side, the industrial sector grew 0.7 percent, rebounding from a 0.5 percent contraction in the first quarter of the year, mainly driven by manufacturing (2.0 percent vs -0.1 percent) and construction (1.9 percent vs -0.5 percent). Also, mining output fell 3.8 percent, slower than a 7.5 percent decrease in Q1 while utilities shrank 0.7 percent after expanding 1.4 percent in the prior quarter. 

The services sector advanced 0.3 percent, higher than a 0.2 percent growth, mostly boosted by trade (0.7 percent vs 0.1 percent), information & communication (0.5 percent vs 0.2 percent) and real estate activities  (0.7 percent vs 0.2 percent). Meantime,  public admininstration, health, social security & education contracted 0.6 percent, after a 0.3 percent increase in the first quarter; financial services continued to shrink (-0.1 percent, the same as Q1) while transportation fell at a softer 0.3 percent (vs -0.6 percent in Q1).

Agriculture contracted 0.4 percent, following a 1.6 percent expansion in the previous period.

On the expenditure side, household spending rose 0.3 percent, the same as in the prior quarter and gross fixed capital formation advanced 3.2 percent, rebounding from a 1.2 percent contraction in the first three months of 2019. On the other hand, government consumption shrank 1 percent, after a 0.5 percent increase. Exports went down 1.6 percent (vs -2.9 percent) while imports increased 1 percent (vs 0.9 percent in Q1).

On a yearly basis, the economy expanded 1.0 percent in the second quarter of 2019, following a 0.5 percent growth in the previous period and also beating market consensus of 0.7 percent. 

Brazil Q2 GDP Growth Beats Forecasts