trending Market Intelligence /marketintelligence/en/news-insights/trending/0JSVjZRa4Mv3c-donnvcwA2 content esgSubNav
In This List

Brazil avoids technical recession with 0.4% growth in Q2

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Brazil avoids technical recession with 0.4% growth in Q2

Brazil's economy grew 0.4% in the second quarter in seasonally adjusted terms compared to the first three months of 2019, official figures published early Aug. 29 showed.

The data from statistics agency IBGE means that Latin America's largest economy avoided a technical recession after shrinking 0.2% in the first quarter.

Compared to a year earlier, GDP increased 1.0% in the second quarter, while first-half 2019 growth came in at 0.7% year over year, IBGE said.

Quarter over quarter, Brazil's industrial and services sectors grew 0.7% and 0.3%, respectively, in the three months through June, while the agricultural sector contracted 0.4%. Growth in the secondary sector was driven by a 2.0% expansion in manufacturing and a 1.9% increase in construction.

Brazil's exports of goods and services declined 1.6% whereas imports grew by 1.0% in the second quarter from the first.

Brazilian central bank chief Roberto Campos Neto recently estimated that the economy would remain stable or expand only slightly in the second quarter, but added that he expects to see acceleration in the following quarters. The central bank in July cut its benchmark Selic rate to a record low 6.00%.

Mexico, the second largest economy in Latin America, also barely dodged a technical recession in the second quarter as GDP remained unchanged from the first three months of the year.