Brazil’s real GDP inches down by 0.1% q/q in Q2

Brazil’s real GDP slipped by 0.1% q/q in Q2, after increasing by 1.2% q/q in Q1 2021, as the second COVID-19 wave curbed economic recovery in the country. On a yearly basis, Brazil’s GDP increased by 12.4% y/y in Q2 2021, bolstered by a low base due to the severe impact of the first wave of the pandemic.

Among the sectors, the activity on the general industry recorded the highest increase in Q2, by 17.8% y/y, followed by services (+ 10,8% y/y), public administration (+ 4.1% y/y) and agriculture (+ 1.3% y/y). On the expenditure breakdown, gross fixed capital formation rose by 32.9% y/y in Q2, while household consumption expanded by 10.8% y/y.

Further data and analysis on Brazil’s economy are available on the CEIC Brazil Economy in a Snapshot – Q2 2021 report.