Brazil’S Economy Grows In May, Though Below Expectations
Date
7/15/2024 3:31:55 PM
(MENAFN- The Rio Times) In May 2024, Brazil's Economy recorded a 0.25% growth, as reported by the Central Bank's Economic Activity index (IBC-Br), a critical indicator of GDP performance.
This uptick follows a nearly flat April, where growth was a mere 0.01%. Annually, the increase stands at 1.30% compared to May 2023.
From January to May, the economy expanded by 2.01%, and the growth over the past twelve months hit 1.66%.
Despite this progress, the results didn't meet market expectations, which predicted a 0.30% rise for May.
Over the recent quarter, the economy grew by 0.53%, marking a steady upward trajectory. The year-on-year quarter comparison shows a 1.24% growth.
The IBC-Br is instrumental in shaping policy, particularly influencing the Central Bank's decisions on the Selic rate, currently at 10.5%.
This rate significantly impacts business and consumer financial decisions across thecountry.
Background
In a recent update, the International Monetary Fund (IMF) raised its 2024 growth forecast for Brazil's GDP from 2.0% to 2.5%.
This revision aligns with Brazil's expectations , highlighting its resilience against global uncertainties.”
Brazil's agricultural and service sectors outperformed in the first half, driven by fiscal stimuli that enhanced consumer spending.
In the first half of 2024, Brazil recorded a trade surplus of $42.309 billion, a 5.2% drop from last year.
This data, released by the Ministry of Development, Industry, Commerce, and Services (MDIC) , highlights a slight increase in total exports, reaching $167.608 billion, up by 1.4% from 2023. Imports, on the other hand, rose by 3.9% to $125.299 billion.
Despite this, Brazil achieved a new export volume record in the first half of 2024. However, agricultural products, notably soybeans, saw an 8.4% decline in sales.
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