Brazil’s economic system grows lower than anticipated in third quarter, however nonetheless reaches file degree By Reuters

© Reuters. FILE PHOTO: Containers in line to be loaded at a cargo terminal on the Port of Santos, in Santos, Brazil September 16, 2021. REUTERS/Carla Carniel

BRASILIA (Reuters) – Brazil’s economic system decelerated within the third quarter, with a decrease than anticipated progress, however nonetheless sufficient to put it on the highest degree of the collection since beginning in 1996.

The nation’s gross home product rose 0.4% within the three months to September, authorities statistics company IBGE mentioned on Thursday, under the 0.7% progress anticipated by economists polled by Reuters.

This was the fifth consecutive quarter of growth, once more bolstered by the companies sector, placing the biggest economic system in Latin America 4.5% above the extent posted earlier than the pandemic, within the fourth quarter of 2019.

Nonetheless, the lack of steam underscores the challenges forward because the central financial institution’s aggressive financial tightening to battle inflation begins to weigh extra closely on exercise, overshadowing authorities stimulus forward of Oct. presidential elections this 12 months that helped enhance demand.

The efficiency within the third quarter was essentially pushed by a 1.1% progress within the dominant companies sector, whereas business grew by 0.8% and agriculture fell 0.9%.

On the demand aspect, funding elevated by 2.8%, authorities expenditure grew by 1.3%, and client spending rose by 1.0%.

Brazil’s GDP expanded by 3.6% from the third quarter of 2021, whereas economists projected a 3.7% enhance.

IBGE additionally revised the second-quarter consequence to a 1.0% growth over the earlier quarter from the 1.2% reported beforehand. However the first quarter progress has now climbed to 1.3% from 1.1% beforehand.