Brazil GDP grows 0.5% in second quarter

Rio de Janeiro - Brazil's economy expanded by 0.5% in the second quarter of 2026, marking a slight increase from the previous quarter. Over the same period, the country's GDP increased by 2% compared to the same quarter in 2025. The data was released by Brazil's statistics agency, IBGE, on Tuesday. As of the second quarter, GDP reached BRL 3.4 trillion (USD 655 billion). Throughout the first half of 2026, the economy expanded by 1.9% compared to the first half of 2025.

The Focus survey, conducted by the Central Bank among financial market institutions and published on Monday, anticipates GDP growth of 1.92% for 2026. When analyzing GDP, two primary approaches can be taken: the production side and the expenditure side. On the production side, agriculture experienced the most significant growth, increasing by 2.8% from the first to the second quarter and a more substantial 6.2% over the past year.

Industry saw a modest 0.1% growth quarter-over-quarter and 1.4% over 12 months. The services sector, Brazil's largest employer, expanded by 0.2% quarter-over-quarter and 1.7% over the past year.

Investment, measured by gross fixed capital formation, rose by 1.2% in the quarter. On the demand side, government consumption grew by 0.4%, while household consumption declined by 0.4%. Exports fell by 0.8%, while imports increased by 1.8% from the first quarter of 2026.