Brazil’s economy shows strength in Q2 as June activity overshoots forecasts
2024.08.16 08:52
BRASILIA (Reuters) – The Brazilian economy closed the second quarter showing resilience after much stronger-than-expected activity data in June, central bank figures showed on Friday, reinforcing forecasts of a solid year.
The IBC-Br index, a key predictor of gross domestic product (GDP), increased by a seasonally adjusted 1.4% from the previous month, beating the 0.5% growth expected by economists in a Reuters poll.
The monthly performance led to a 1.1% expansion in the second quarter compared to the previous three months.
Finance Minister Fernando Haddad said this week that the government would likely revise this year’s expected economic growth forecast upwards to more than 2.5%, after maintaining the estimate at that level in July.
Latin America’s largest economy has been supported by a strong labor market and booming services sector, which hit an all-time high in June.
The second quarter’s performance showed resilience despite the severe floods that hit the southernmost state of Rio Grande do Sul in May, devastating cities and displacing more than a half million people. These events led many economists to predict potential economic losses for the country.
The official gross domestic product (GDP) figures will be released by the statistics agency IBGE on September 3.
