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The results of the The third quarter shows an improvement in the Brazilian economy that exceeds that projected, supported by the growth of services and industry.
The Brazilian government, led by Luiz Inácio Lula da Silva, celebrated a growth robust
of its economy this Tuesday, with the arrival of data for the third quarter, which showed an expansion of 0.9 percent over the previous period and 4 percent in relation to the same quarter of the previous year.
The boost to growth last quarter was due to the revenue from industry, services and household spending, according to official data.
The result shows a growth of 4 percent for the gross domestic product (GDP) of the largest economy in Latin America in relation to the third quarter of 2023, good news for Lula’s government, which faces distrust from the investors on their ability to control the expansion of public spending.
In the first nine months of this year, Brazil’s GDP accumulated an increase of 3.3 percent. GDP continues to grow, creating more jobs and income for Brazilians
Lula celebrated in a message broadcast on the social network X.
The Ministry of Finance, in turn, announced a robust growth rate
and estimated that the growth projection for 2024 should be revised upwards
according to a note shared by the Secretariat of Economic Policy.
For her part, the Minister of Planning and Budget, Simone Tebet, highlighted that this quarter’s figure shows that the country produces more and more
which generates income and jobs. With measures that promote the balance of public accounts, we will strengthen the economy and ensure that the achievements last. It is Brazil moving forward with work and fiscal responsibility!
expressed the minister in X.
The presidential chief of staff, Rui Costa, pointed out that the data is one more test
that it is possible to govern by taking care of those who need it most, and maintaining public accounts and controlled investments. We will continue investing in Brazil and working for Brazilians
the official said, highlighting that the data exceeded market expectations.
However, GDP growth in the third quarter, which runs from July to September, was lower than that achieved in the first (+1.1 percent) and second quarter (+1.4 percent), according to the Brazilian Institute of Geography and Statistics (IBGE).
In any case, the data slightly exceeded the expectations of the financial consultants cited by the Brazilian economic newspaper. Worthwhich forecast an expansion of 0.8 percent quarter to quarter.
At a sectoral level, the performance of the Brazilian economy in the third quarter was marked by the advance of services (+0.9 percent) and industry (+0.6). Services have a fundamental weight in the Brazilian economy, representing around 70 percent of the country’s GDP.
This boost offset the decline in agriculture (-0.9 percent), which this year faced extreme weather events, with record droughts in several regions and severe floods in April and May, particularly in the south of the country.
Household spending (+1.5 percent) and government spending (+0.8) also contributed to the growth of the economy, with increases in gross fixed capital formation (+2.1 percent) compared to the previous quarter, indicated the IBGE.
The data confirms an economic rebound after almost zero growth in the second half of 2023. Economic activity continues to show signs of resilience in the short term
said André Perfeito, an analyst at the Catholic University of San Pablo.
Regarding the external sector, there was a drop in exports of goods and services (-0.6 percent) and an increase in imports of goods and services (+1 percent) in relation to the previous quarter.
Meanwhile, unemployment in the country registered its lowest level since 2012 in the August-October quarter, at an estimated 6.2 percent. But Brazil faces other current challenges.
