Brazil’s GDP rose by 0.9% in the second quarter of 2023, beating forecasts, and reached R$2.65 trillion (US$546 billion). This data comes from Brazil’s official statistics agency, IBGE.
The economy grew 3.4% compared to last year, showing signs of slowing down. In the first half of 2023, Brazil’s economy grew by 3.7%.
The IBGE reports that industry and services helped, growing 0.9% and 0.6%, respectively. Yet, agriculture shrank by 0.9%.
Financial experts had predicted only a 0.3% growth for the quarter. But the economy had expanded by 1.9% in the first quarter of 2023.
Some early signs also hinted at slower growth. For example, the Central Bank’s index showed a 0.43% rise, and the Getulio Vargas Foundation estimated a 0.2% increase.
The Finance Ministry expected 0.3% growth for the second quarter on July 19. For 2023, the government first predicted 2.5% growth.
Now, they’ve lowered it to 2.3%.
Meanwhile, according to the Central Bank’s bulletin, market experts expect a 2.31% growth for the year.
Services make up the most significant part of Brazil’s GDP at 70.9%. Industry comes next with 22.5%.
GDP measures a country’s economic health in two simple ways. It adds up what everyone produces and what everyone buys.
These totals include everything from factories and services to farms and shopping.
The IBGE releases these numbers every three months. The final details come out two years later.
This data gives us a critical look at Brazil’s economic health.\
ECONOMIC HISTORY
Brazil’s economic history has been a rollercoaster of ups and downs. The country faced a severe recession, political instability, and high inflation rates in the past decade.
Then came the COVID-19 pandemic, which significantly impacted its economy. Despite these challenges, Brazil showed signs of recovery in recent years.
The country has a diverse economy, rich in natural resources, and a strong focus on exports like soy, iron ore, and aviation products.
Political changes, including shifts in government policies, have also played a crucial role in economic development.