RIO DE JANEIRO, BRAZIL – The Brazilian GDP (Gross Domestic Product) surprised negatively by slipping 0.1% in the second quarter compared to the first, according to the IBGE (Brazilian Institute of Geography and Statistics). The financial market was expecting an increase of 0.2%.
The performance of private investment, measured by the Gross Fixed Capital Formation (GFCF), also came as a negative surprise; it dropped 3.6% in comparison to the first quarter after two consecutive drops. The figure was worse than the expected drop of 2.2%, according to Valor Data’s survey with consulting and financial institutions.
Investment had grown 4.8% in the first quarter, a revised figure of 4.6% previously reported.
Thus, investments accumulated growth of 12.8% in the 12 months through June.