More Of The Same

BRAZIL ECONOMICS - Report 04 Dec 2024 by Alexandre Schwartsman, Cristina Pinotti and Diego Brandao

GDP growth in the third quarter of the year slightly exceeded expectations, at 0.9%, compared to the second quarter, against analysts' median estimate of 0.8%, with no major revisions to the most recent data. However, 2023 growth was revised upward to 3.2% from the initial estimate of 2.9%.

Short-term performance remains driven by household consumption, which maintained an expansion of around 1.5%, equivalent to R$ 27 billion, or two-thirds of the increase in domestic demand. Although investment also grew slightly above 2% in the quarter, its contribution was less than half that of consumption, amounting to R$ 10.3 billion.

From the production perspective, the services sector remains the main driver of GDP growth, recording a 0.9% increase, the same as in the second quarter, accounting for almost 80% of the increase in value added at basic prices (VAPB) in the quarter.

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