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 <strong>of</strong> 2017, compared to the first three months <strong>of</strong> the year, according to data released by the Brazilian Institute <strong>of</strong> 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 <strong>of</strong> 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 <strong>of</strong> retraction and one <strong>of</strong> zero variation. IBGE National Accounts Coordinator, Rebecca de La Rocque Pali, pointed out that consumption was benefited by "a combination <strong>of</strong> positive factors" that <strong>of</strong>fset the labor market figures. She cited the growth <strong>of</strong> 2.3% <strong>of</strong> real wages, the fall in the basic interest rate, lower inflation and credit. "In addition, we had the release <strong>of</strong> the inactive accounts <strong>of</strong> the FGTS. Although most households used this money to pay <strong>of</strong>f debt or for savings, some <strong>of</strong> it was used for consumption." GDP (QoQ%) 0,2% The GDP is the sum <strong>of</strong> all goods and services produced in the country and serves to measure the evolution <strong>of</strong> the economy. In the second quarter <strong>of</strong> 2017, the Brazilian economy recorded a growth rate <strong>of</strong> 0.2% quarter on quarter. "The labor market is improving. Interest rates, the clear trend is for the continuation <strong>of</strong> the reduction and the maintenance <strong>of</strong> lower inflation are favorable conditions for the maintenance <strong>of</strong> household consumption. "Against the movement <strong>of</strong> families, the government spent less this year. Public spending fell by 0.9% and negatively influenced GDP. One <strong>of</strong> the positive highlights <strong>of</strong> the second quarter GDP was the improvement <strong>of</strong> the services sector, which grew 0.6% and made the largest contribution to the result. This sector accounts for about 70% <strong>of</strong> 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.
BRAZIL IS BACK ON TRACK The indicators <strong>of</strong> the first 17 months <strong>of</strong> government reflect optimism and confidence INFLATION BASIC INTEREST RATE INDUSTRIAL PRODUCTION CAR SALES GRAIN CROPS TRADE BALANCE EXPORTS IMPORTS JOBS CREATION OCCUPIED LABOR FORCE JOBS CREATION PNAD/IBGE IED IBOVESPA GDP BRAZIL RISK (EMBI) JULY 2016 9,28% 14,25% -9,8% -24,3% 185,8 MILLION T. USD 19,682 BILLION USD 73,512 BILLION USD 53,83 BILLION -448,101 THOUSAND 89,9 MILLION -437 THOUSAND USD 75 BILLION 53,241 THOUSAND -5,4% 544 BP NOVEMBER 2017 2,54% 7,5% +1,6% +27% 242 MILLION T. USD 58,477 BILLION USD 183,481 BILLION USD 125 BILLION +163,417 THOUSAND 91,3 MILLION +1,1 MILLION USD 78,9 BILLION 76,989 THOUSAND POINTS +0,3% 239 BP S O U R C E ; " P A R E E C O M P A R E - 1 7 M E S E S D E G O V E R N O "
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