Brazilian economy grows 0.4% in the 3rd quarter and 3.2% year-on-year

The Brazilian economy grew 0.4% in the 3rd quarter compared to the previous period, according to FGV (Fundação Getúlio Vargas).

In the year-on-year comparison, the third quarter was 3.2%.

The GDP (Gross Domestic Product) Monitor was released this Monday (Nov. 21).

In monetary terms, it estimates the accumulated GDP for the first three quarters to be R$7.235 (US$1.3) trillion.

According to the research coordinator, Juliana Trece, the growth was driven by agriculture, industry, and services.

“Despite this positive performance, the result for the 3rd quarter shows a loss of strength for the economy, as the growth rate was lower than those observed in the 1st and 2nd quarter of the year,” she said.

The result of the GDP Monitor differs from the one released by the Central Bank through the IBC-Br (Economic Activity Index).

According to the index, economic activity accumulated a high of 1.36% in the third quarter compared to the three previous months.

In the monthly assessment, the GDP retreated 0.4% in September compared to August.

It is the second consecutive monthly retreat. In August, the Brazilian economy retracted by 0.8%.

According to Trece, the result signals “difficulty” for the country to maintain the growth rate recorded at the beginning of the year.

Data from the IBGE, which publishes the official GDP results, showed that the economy grew 1.2% in the 2nd quarter.

The GDP Monitor for the same period stated that the advance was 1.1%.

“It is no surprise that interest rates at high levels have been reflected in economic difficulties in the 2nd half of the year,” says Trece.

In contrast, the Brazilian GDP grew 2.3% in September compared to last year’s period.

OTHER INDICATORS

Household consumption grew 5.6% from July to September.

The service sector contributed to the result. According to FGV, since the 2nd quarter, the consumption of non-durable goods has also presented relevance for the growth of family consumption.

In contrast, the consumption of durable goods has fallen since the 3rd quarter of 2021.

The export of goods and services also grew in the 3rd quarter.

The increase of 6.3% is related to the growth of practically all segments, highlighting the most significant contributions from the exports of intermediate goods and services.

The only sector registered retraction was mineral extraction, which fell by 0.9%.

On the other hand, imports of goods and services registered a growth of 7.4%, driven by the positive performance of imports of services, intermediate, and capital goods.