By Marcela Ayres<\/p>\n
BRASILIA (Reuters) -Brazil’s economy lost momentum in the second quarter but still outperformed market expectations, driven by resilient services activity and gains in the extractive industry, official data showed on Tuesday.<\/p>\n
Gross domestic product in Latin America’s largest economy grew 0.4% in the April-to-June period from the previous quarter, statistics agency IBGE said, above the 0.3% expansion expected by economists in a Reuters poll.<\/p>\n
That marked a steep slowdown from revised 1.3% growth in the first quarter, when seasonal farm output boosted performance in the agricultural powerhouse. Farming output slipped 0.1% in the second quarter from the prior three months.<\/p>\n
Industrial production rose 0.5%, helped by a 5.4% increase in extractive industries. Services, which account for about 70% of Brazil’s GDP, expanded 0.6%, underpinned by a robust labor market.<\/p>\n
On the demand side, investments as measured by gross fixed capital formation fell 2.2% after driving growth in the first quarter, pressured by high borrowing costs.<\/p>\n
The central bank has raised interest rates by 450 basis points since September last year to 15%, a near two-decade high, and kept them steady in July.<\/p>\n
Government consumption declined 0.6%. But household consumption grew 0.5%, supported by measures from President Luiz Inacio Lula da Silva’s government to sustain wage gains.<\/p>\n
Year-on-year, GDP expanded 2.2%, in line with expectations in the Reuters poll. The government projected in July a 2.5% expansion in 2025, following 3.4% growth last year.<\/p>\n
(Reporting by Marcela Ayres; Editing by Andrew Heavens and Bernadette Baum)<\/p>\n","protected":false},"excerpt":{"rendered":"By Marcela Ayres BRASILIA (Reuters) -Brazil’s economy lost momentum in the second quarter but still outperformed market expectations,…\n","protected":false},"author":2,"featured_media":114180,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64271,45,49,48,64268,64267,64269,100,64270],"class_list":["post-114179","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-brazils-economy","tag-business","tag-ca","tag-canada","tag-extractive-industries","tag-extractive-industry","tag-gross-domestic-product","tag-markets","tag-reuters-poll"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/114179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=114179"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/114179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/114180"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=114179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=114179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=114179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}