Data release: 09/01/2022
During the second quarter of the year, the Brazilian GDP rose 1.2%, above the median forecast, that expected a growth of 1.9%.
- Positive Highlights: Industry (+2.2%), Services (+1.3%), Agriculture (+0.5%), GFCF( +4.8%), Family Consumption (+2.6%).
- Negative Highlights: Exports (-2.5%) and Government Consumption (-0.9%).
View: when we analyze the GDP by measuring spending, we capture a considerable advance on the three categories. This can be explained by the strong labor market on the quarter, which pushed the production forwards and tends to raise the demand. As said before, and now confirmed, one of the greatest highlights of this data release was the growth of GFCF (+4.8%). Therefore, the investment as percent of GDP is set at 18.7%, in a steady level compared to the last quarter.
To the next months, it is natural that a deceleration in activity happens, due to the monetary tightening. However, fiscal incentives, an improvement of available income’s perspectives, and a still strong labor market, might turn the activity even more resilient.
