Brazil’s GDP accelerates and grows 1.4% in the 2nd quarter, driven by consumption and investments

Brazil’s GDP (Gross Domestic Product) grew 1.4% in the 2nd quarter, compared to the three immediately preceding months, according to data released on Tuesday, the 3rd, by the IBGE (Brazilian Institute of Geography and Statistics). In current values, the GDP totaled R$2.9 trillion.

The result was above expectations and represents an acceleration compared to the first quarter of 2024, when the Brazilian economy grew 1%, according to revised data. Compared to the second quarter of 2023, GDP grew 3.3%.

“The increases in Services (1.0%) and Industry (1.8%) contributed to this positive rate, even though Agriculture fell 2.3% in the period. From the demand perspective, in the same comparison, there were increases in the three components: Household Consumption and Government Consumption grew at the same rate (1.3%, both) and Gross Fixed Capital Formation rose 2.1%”, highlighted the IBGE.

The investment rate was 16.8% of GDP, above the 16.4% recorded in the second quarter of 2023. The savings rate was 16.0%, below the 16.8% in the same quarter of 2023.

GDP is the result of the sum of all goods and services produced in the country and is used to measure the performance and evolution of the economy. Measured by the IBGE in Brazil, it is released every three months.

In the Central Bank’s Focus report, which presents market projections for the main economic indicators, the expectation for GDP in 2024 is an increase of 2.46%. The government is forecasting growth of 2.5%, but Finance Minister Fernando Haddad has already signaled that the ministry should soon raise its projection for GDP growth in the year.