Brazil’s economy grows 0.5% in second quarter of 2026

Brazil's economy experienced a modest 0.5% growth in the second quarter of 2026 when compared to the first quarter, according to Brazil's government statistics agency, IBGE. The country's GDP reached a total of BRL 3.4 trillion during this period, with the figures published on September 1st of the same year. This growth was also reflected when compared to the second quarter of 2025, where the total value of goods and services produced within the nation increased by 2%.

Unemployment rates dropped to 5.3%, marking the lowest point for the quarter ending in July. Meanwhile, Brazil's public debt increased by 0.22% in July, surpassing the BRL 9.2 trillion mark.

Government tax revenue saw an 8.97% rise in July, signalling a positive trend over the past four quarters where GDP expanded by 1.9%. The Central Bank's Focus bulletin, a survey conducted by financial market institutions, projected a GDP growth of 1.92% for 2026 on August 31st.

From a production standpoint, agriculture and livestock sectors saw a remarkable 2.8% increase from the first to the second quarter, with the overall increase reaching 6.2% over the past year. Manufacturing saw a 0.1% increase within the same period, and 1.4% over a year, with the extractive industry leading the charge with a 3.4% surge quarter-on-quarter.

The services sector, which employs the majority of the population, grew by 0.2% quarter-on-quarter and 1.7% over the past year. Within the services sector, the information and communication subsector led the increase, with a 2.1% growth rate. Gross Fixed Capital Formation, a key indicator of investment, experienced a 1.2% growth during the quarter.

In terms of demand, government consumption rose by 0.4%, while household consumption declined by 0.4%. On the external sector, exports decreased by 0.8%, while imports rose by 1.8% compared to the first quarter of 2026.