Brazil’s economy grew by 1% y/y in Q1

Brazil’s real GDP increased by a seasonally-adjusted 1.2% q/q in Q1 2021, and an unadjusted 1% y/y following four quarters of decline. The economy received a boost from strong investment growth, as the gross fixed capital formation jumped by 17% y/y. By contrast, household consumption fell by 1.7% y/y in Q1 2021, while government consumption declined by 4.9% y/y.

As for external trade, goods and services exports increased by 0.8% y/y, and imports rose by 7.7% y/y, due to the improved domestic demand and higher import costs. The output breakdown by sector indicates that the agriculture and industrial sectors posted growth, but services declined.

Further data and analysis on Brazil’s economy are available on the CEIC Brazil Economy in a Snapshot – Q1 2021 report.