ADVERTISING

Latest Photo Galleries

Signs of Tension Signs of Tension

Published on 04/11/2016

Rio: a City in Metamorphosis Rio: a City in Metamorphosis

Published on 11/19/2015

Brazilian Markets

18h30

Bovespa

+1,27% 73.437

16h43

Gold

0,00% 117

17h00

Dollar

-0,48% 3,2640

16h30

Euro

+0,49% 2,65250

ADVERTISING

Brazilian G.D.P. Grows but Recession Could Endure

06/02/2017 - 11h47

Advertising

NICOLA PAMPLONA
FROM RIO DE JANEIRO
MARIANA CARNEIRO
SPECIAL ENVOY TO RIO DE JANEIRO

Brazil's G.D.P. increased by 1% in the first quarter of 2017 in comparison with the three last months of 2016. It is the first positive figure since the last quarter of 2014.

The result was commemorated by the government; however, economists say that the performance is not a guarantee that the country has overcome its ongoing recession.

The new data on the second quarter disclosed now and the most recent political turbulence (a consequence of the plea bargain of JBS) have increased the risk that the G.D.P. will show yet another decline in coming months.

The political crisis is one of the factors that holds the Brazilian economy back.

The economic improvement was concentrated in products directed to exports, such as soybeans, corn, petroleum and iron ore.

Even the performance of manufacturing industry, which fell 0.9% in comparison with the previous quarter, was only saved by the increase in automobile exports.

The record-breaking unemployment (14 million Brazilians were out of work in April) is another obstacle to the increase of domestic demand.

Jorge Araujo/Folhapress
Brazil Finance Minister, Henrique Meirelles
Brazil Finance Minister, Henrique Meirelles

The main factor that contributed to the positive result was the performance of the agricultural sector, which rose 13.4% in the first quarter, driven by record-breaking grain harvests.

The service sector, which corresponds to more than 70% of the country's G.D.P., did not change. And the industrial sector had a 0.9% increase.

The central projection was a 1% hike. Finance Minister Henrique Meirelles says that the tendency is that the economy will be stagnant in the second quarter.

Translated by THOMAS MUELLO

Read the article in the original language

You have been successfully subscribed. Thanks!

Close

Are you interested in news from Brazil?

Subscribe to our English language newsletter, delivered to your inbox every working day, and keep up-to-date with the most important news from Brazil.

Cancel