Brazlilian Slovak Chamber of Commerce

B R A Z I L , O N T H E R O A D
T O R E C O V E Y
Consumption increases, despite caution
The Brazilian economy grew by 0.2% in the second
quarter of 2017, compared to the first three months of
the year, according to data released by the Brazilian
Institute of Geography and Statistics (IBGE). In current
values, the quarter GDP reached R $ 1,639 trillion.
In the first quarter, the economy advanced 1,0%,
interrupting a two-year sequence of negative GDP.
In comparison with the same period last year, GDP grew
by 0.3%. It was the first high after 12 lows in a row.
The GDP data shows that the Brazilians have returned to
spending. Household consumption rose 1.4% in the
second quarter, after eight quarters of retraction and one
of zero variation. IBGE National Accounts Coordinator,
Rebecca de La Rocque Pali, pointed out that consumption
was benefited by "a combination of positive factors" that
offset the labor market figures. She cited the growth of
2.3% of real wages, the fall in the basic interest
rate, lower inflation and credit. "In addition, we had the
release of the inactive accounts of the FGTS. Although
most households used this money to pay off debt or for
savings, some of it was used for consumption."
GDP
(QoQ%)
0,2%
The GDP is the sum of all
goods and services produced
in the country and serves to
measure the evolution of the
economy. In the second
quarter of 2017, the
Brazilian economy
recorded a growth rate
of 0.2% quarter on quarter.
"The labor market is improving.
Interest rates, the clear trend is
for the continuation of the
reduction and the maintenance
of lower inflation are favorable
conditions for the maintenance
of household consumption.
"Against the movement of
families, the government spent
less this year. Public spending fell
by 0.9% and negatively
influenced GDP. One of the
positive highlights of the second
quarter GDP was
the improvement of the services
sector, which grew 0.6% and
made the largest contribution to
the result. This sector accounts
for about 70% of GDP, and
recorded an increase in trade
(1.9%), real estate and other
services (0.8%) and
transportation, warehousing and
mail (0.6%). Information services
fell by 2.0% and administrative,
health and public education
activities (-0.3%) and financial
and insurance intermediation
(-0.2%) had negative variations.