The expansion of the Brazilian economy between April and June was driven by the advance of the industry (2.2%), the services (1.3%) and the agricultural activity (0.5%), detailed the IBGE statistical institute in a statement.
It is the fourth consecutive positive result of the Brazilian GDP. In the first quarter, the Gross Domestic Product (GDP) climbed 1.1%.
The Brazilian economy accumulated growth of 2.5% in the first semester of this electoral year, on which months ago the market projected figures close to stagnation.
Claudia Moreno, economist at the digital bank C6, highlights a “recovery in investments (4.8%) and family consumption (2.6%) in the second quarter compared to the previous one”, despite high inflation.
This result, together with low inflationconsolidate good news for Bolsonaro in the electoral race, as he tries to close the gap of 15 percentage points that separates him from the leader in the polls, former president Luiz Inácio ‘Lula’ da Silva, according to the Datafolha Institute.
In addition, the rate of unemployment fell to 9.1% between May and Julyless than 10 million unemployed for the first time since 2016.
Moreno estimates that on the external front, the economy will be affected by “a drop in the prices of raw materials and the global slowdown,” he adds.
Brazil closed 2021 with a growth of 4.6% compared to the previous year, in which the economy fell 3.9% hit by the Covid-19 crisis.
Source: Ambito
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