Brazilian GDP Grows 1% and Confirms End of Recession

03/02/2018 - 11h27

Brazilian economy is no longer in recession and grew 1% last year.

The result is a breath of fresh air after the reduction of almost 8% in 2015 and 2016, but the numbers of the fourth quarter of the year disappointed: analysts of the financial market and the government itself were more optimistic and expected a 1.1% growth for the GDP.

The expected rate for the last quarter of the year was 0.4%, but the actual figure was 0.1%.

According to analysts, although the numbers announced on Thursday (1) by the IBGE (Brazilian Institute of Geography and Statistics) are below expectations, they confirm the recovery of Brazilian economy. But it will take time to make up for the losses.

At the beginning of 2017, the GDP (Gross Domestic Product) was already showing signs of recovery, due to Brazil's record grains harvest. According to the IBGE, agribusiness had its best results since 1996 - start of the current historical series - it rose 13%.

Exports, which benefited from higher prices, also include oil and iron ore.

In the following months, consumer spending also showed signs of recovery, jointly with investments and industrial production.

The government celebrated the results of the GDP, but it is aware that not all indicators are encouraging.

Finance Minister, Henrique Meirelles, said that investments, despite having their worst result in history, went up in the last quarter.

President Michel Temer said the result represents hope for the future of the country.

Translated by ANA BEATRIZ DEMARIA

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