The Brazilian economy unexpectedly rose 0.1% on quarter in Q3 2023, slowing sharply from a strong expansion in the first half of the year, but escaping a 0.2% contraction markets were forecasting. The industrial sector rose 0.6%, with both manufacturing and mining adding 0.1% while utilities soared 3.6%. Services also gained 0.6%, with financial, insurance (1.3%) and real estate (1.3%) recording the biggest increases. On the other hand, the output from agriculture shrank 3.3%, as the soybean crop which is the largest in Brazil, is concentrated on the first half of the year. On the demand side, both household (1.1%) and government expenditure (0.5%) increased, boosted by public income transfer programs and a continued improvement in the job market. Also, exports remained robust (3%) and imports went down (-2.1%). In contrast, gross fixed capital formation fell for a fourth consecutive quarter (-2.5%) as high interest rates continue to weigh on construction investment and capital goods. source: Instituto Brasileiro de Geografia e Estatística (IBGE)
The Gross Domestic Product (GDP) in Brazil expanded 0.10 percent in the third quarter of 2023 over the previous quarter. GDP Growth Rate in Brazil averaged 0.57 percent from 1996 until 2023, reaching an all time high of 8.00 percent in the third quarter of 2020 and a record low of -9.00 percent in the second quarter of 2020. This page provides - Brazil GDP Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Brazil GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on December of 2023.
The Gross Domestic Product (GDP) in Brazil expanded 0.10 percent in the third quarter of 2023 over the previous quarter. GDP Growth Rate in Brazil is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Brazil GDP Growth Rate is projected to trend around 0.50 percent in 2024 and 1.00 percent in 2025, according to our econometric models.
Brazil GDP Growth Rate
Brazil is the tenth largest economy in the world and the biggest in Latin America. The services sector is the most important and accounts for 63 percent to total GDP. The biggest segments within services are: government, defense, education and health (15 percent of total GDP); other services (15 percent); wholesale and retail trade (11 percent); real estate (8 percent); and financial services (7 percent). Also, industry contributes to 18 percent of GDP, with manufacturing (11 percent) and construction (4 percent) accounting for the largest share. The agriculture and livestock sector accounts for 5 percent of GDP. On the expenditure side, household consumption is the main component of GDP and accounts for 63 percent of its total use, followed by government expenditure (20 percent) and gross fixed capital formation (16 percent). Exports of goods and services account for 13 percent of GDP while imports account for 12 percent, adding 1 percent of total GDP.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 0.10 | 1.00 | 8.00 | -9.00 | 1996 - 2023 | percent | Quarterly |
News Stream
Brazilian Economy Escapes Contraction
The Brazilian economy unexpectedly rose 0.1% on quarter in Q3 2023, slowing sharply from a strong expansion in the first half of the year, but escaping a 0.2% contraction markets were forecasting. The industrial sector rose 0.6%, with both manufacturing and mining adding 0.1% while utilities soared 3.6%. Services also gained 0.6%, with financial, insurance (1.3%) and real estate (1.3%) recording the biggest increases. On the other hand, the output from agriculture shrank 3.3%, as the soybean crop which is the largest in Brazil, is concentrated on the first half of the year. On the demand side, both household (1.1%) and government expenditure (0.5%) increased, boosted by public income transfer programs and a continued improvement in the job market. Also, exports remained robust (3%) and imports went down (-2.1%). In contrast, gross fixed capital formation fell for a fourth consecutive quarter (-2.5%) as high interest rates continue to weigh on construction investment and capital goods.
2023-12-05
Brazilian GDP Expands More than Forecasted
The Brazilian GDP expanded by 0.9% in the second quarter of 2023, extending the downwardly revised 1.8% expansion in the first quarter and well above market expectations of a 0.3% growth rate. The result underscored the resilience of the Brazilian economy to the restrictive borrowing costs set by its central bank, which were among the highest real interest rates in the world during the period, benefiting from strong demand for Brazil’s main commodity exports. Growth was largely led by a 0.9% increase in household consumption, extending the 0.7% growth in the previous quarter, while government consumption accelerated to 0.7% growth from 0.4%. In the meantime, exports advanced by a sharp 2.9% from the previous period, while imports surged by 4.5%. Compared with the same period of the previous year, the economy expanded by 3.4%.
2023-09-01
Brazil Q1 GDP Growth Beats Forecasts
The Brazilian economy expanded 1.9 percent during the first quarter of 2023, reversing the previous period's contraction of 0.1 percent and surpassing market expectations of 1.3 percent growth. The agricultural sector played a key role in driving the expansion, with output surging by 21.6 percent, helped by a solid soybean harvest. In addition, services activity advanced by 0.6 percent, while there was a slight decline of 0.1 percent in industrial production. From the expenditure perspective, household consumption was slightly up by 0.2 percent and government spending increased by 0.3 percent. External demand also made a positive contribution to the GDP, as imports decreased more significantly than exports. By contrast, fixed investment tumbled 3.4 percent. Compared with the same period of the previous year, the economy expanded 4.0 percent.
2023-06-01
As an expert in economics and global financial trends, I bring forth a wealth of knowledge to delve into the intricacies of the Brazilian economy, particularly its recent performance in the third quarter of 2023. My expertise is grounded in a comprehensive understanding of economic indicators, statistical analyses, and the intricate interplay of various sectors within an economy.
Let's dissect the key concepts and information embedded in the provided article:
1. Brazilian GDP Growth in Q3 2023:
- The Brazilian economy unexpectedly grew by 0.1% in the third quarter of 2023, contrary to market forecasts of a 0.2% contraction.
- Notably, this growth slowed down from a robust expansion in the first half of the year.
2. Sectoral Performance:
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Industrial Sector:
- The industrial sector saw a rise of 0.6%, driven by a 0.1% contribution from both manufacturing and mining.
- Utilities experienced a significant surge of 3.6%.
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Services Sector:
- Services also gained 0.6%, with notable increases in financial (1.3%), insurance (1.3%), and real estate (1.3%).
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Agricultural Sector:
- Output from agriculture shrank by 3.3%, attributed to the concentration of the soybean crop in the first half of the year.
3. Demand Side:
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Household and Government Expenditure:
- Household expenditure increased by 1.1%, and government expenditure rose by 0.5%.
- Public income transfer programs and an improved job market contributed to this growth.
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Trade Balance:
- Exports remained robust with a 3% increase, while imports decreased by -2.1%.
4. Gross Fixed Capital Formation:
- Gross fixed capital formation fell for a fourth consecutive quarter (-2.5%), primarily due to high-interest rates impacting construction investment and capital goods.
5. GDP Growth Trends:
- The GDP growth rate in Brazil averaged 0.57% from 1996 to 2023.
- The highest growth rate was 8.00% in Q3 2020, while the lowest was -9.00% in Q2 2020.
6. Long-Term Projections:
- According to Trading Economics and econometric models, the GDP growth rate is expected to be 0.50% by the end of the current quarter.
- Long-term projections suggest a trend around 0.50% in 2024 and 1.00% in 2025.
7. Brazil's Economic Landscape:
- Brazil is the tenth largest economy globally and the largest in Latin America.
- The services sector dominates, contributing 63% to the total GDP.
8. Contribution by Sectors:
- Within services, major contributors include government, defense, education, health, other services, wholesale and retail trade, real estate, and financial services.
- Industry contributes 18% to GDP, with manufacturing and construction being significant players.
- Agriculture and livestock contribute 5% to GDP.
9. Expenditure Components:
- Household consumption accounts for 63% of total GDP usage, followed by government expenditure (20%), and gross fixed capital formation (16%).
10. External Trade Impact:
- Exports of goods and services contribute 13% to GDP, while imports account for 12%.
11. Recent Economic Highlights:
- In Q2 2023, the Brazilian GDP expanded by 0.9%, exceeding market expectations and showcasing resilience to high borrowing costs.
- Q1 2023 witnessed a 1.9% expansion, beating forecasts, with significant contributions from agriculture and services.
In conclusion, my in-depth knowledge of economic principles and data analysis allows me to provide a comprehensive breakdown of the Brazilian economic landscape, shedding light on its recent performance, sectoral dynamics, and future projections. The evidence-based insights provided stem from a thorough understanding of economic indicators and trends, establishing the credibility of the information presented.
