Brazil’s GDP shows growth in the 2nd quarter of 2023

According to the Brazilian Institute of Geography and Statistics (IBGE), Brazil’s Gross Domestic Product (GDP) grew by 0.9% in the 2nd quarter of 2023, after an increase of 1.8% in the first three months of year. This expansion was driven mainly by the strong expansion of the agricultural sector and represents the eighth consecutive quarter of positive growth of the indicator on a quarterly basis.

The positive performance of the GDP in the second quarter was led by the sectors of services (0.6%) and industry (0.9%). It is important to highlight that the services sector represents around 70% of the Brazilian GDP, playing a fundamental role in the general growth of the economy. In addition, other sectors that stand out in the second quarter include household consumption, government consumption, investments, exports and imports.

Compared to the same quarter of the previous year, all sectors performed solidly, with the exception of the investment sector (0.1%). General GDP growth reached 3.4% in relation to the same period of the previous year, totaling R$ 2.651 trillion in current values.

It is important to note that this result exceeded financial market expectations, which projected an increase of just 0.3% in the indicator, according to a Central Bank report. “If there is no more growth this year, GDP has already grown 3.1% in 2023”, said Dario Durigan, executive secretary of the Ministry of Finance, who claims that the positive data was surprising.