Brazil's economy sees 2.5 percent annual growth in Q1

(MENAFN) Brazil's economic performance in the first quarter of this year exhibited resilience and strength, with the country's gross domestic product (GDP) expanding by 2.5 percent annually compared to the same period in 2023, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) on Tuesday. This growth surpassed initial estimates, which had anticipated a more modest increase of 2.2 percent. Moreover, it represented an improsvement over the 2.1 percent annual growth recorded in the fourth quarter of 2023.

The positive momentum was driven by robust growth in the industry and services sectors, which expanded by 2.8 percent and 3 percent year-on-year, respectively. Despite these gains, the agriculture sector faced challenges, contracting by 3 percent on an annual basis, as reported by the IBGE. Nonetheless, the overall performance of the economy reflected a broad-based expansion across multiple sectors.

On a quarterly basis, Brazil's economy demonstrated resilience and recovery, growing by 0.8 percent in the January-March period of 2024 compared to the preceding quarter, October-December of 2023. This quarterly growth, while meeting market expectations, marked a notable turnaround from the 0.1 percent contraction observed in the final quarter of the previous year. The economy's ability to bounce back and regain momentum highlights its underlying strength and adaptability.

The agriculture sector emerged as a key driver of growth in the first quarter of this year, posting an impressive expansion of 11.3 percent. This surge in agricultural output contributed significantly to overall economic performance, offsetting challenges in other sectors. Additionally, the services sector, a vital component of Brazil's economy, also contributed to growth with a solid gain of 1.4 percent, reflecting positive trends in consumer spending and business activity.

Overall, Brazil's economic data for the first quarter of 2024 underscores the country's resilience in the face of challenges and its ability to sustain growth momentum. As the economy continues to navigate global and domestic uncertainties, this strong performance bodes well for future prospects and signals a promising trajectory for Brazil's economic recovery.

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