Brazil GDP Grew 0.5% as Farms Carried a Weaker Quarter
Brazil GDP grew 0.5% in the second quarter of 2026, beating expectations, but household consumption fell. Agriculture was the main driver. The post Brazil GDP Grew 0.5% as Farms Carried a Weaker Quarter appeared first on The Rio Times .
Brazil's economy expanded 0.5% in the second quarter of 2026, according to the national statistics agency IBGE. This growth was weaker than the 0.4% expected by markets. The previously strong first quarter's 1.1% expansion marked a notable slowdown. Over the year up to June, GDP grew 1.9%. Agriculture and livestock drove the expansion, with a 2.8% quarter-on-quarter rise.
Livestock output and productivity gains contributed significantly. In contrast, services grew by only 0.2% and industry 0.1%. Household consumption, the largest demand component, fell 0.4% in the quarter, reflecting caution among families due to high interest rates. Despite this, government spending and investment rose, increasing by 0.4% and 1.2% respectively.
The economy reached a record 3.4 trillion reais in current values during the quarter. The housing sector expanded by 0.2%, while commerce was flat. The central bank's Selic rate is 14%, discouraging borrowing and spending, which explains the subdued household consumption. The Focus survey projects a 1.92% growth for 2026, slower than recent trends.
Growth in the first half of the year was robust, but the slowdown in Q2 suggests the economy is cooling. The mixed signals highlight resilience in some sectors, like agriculture, while other sectors remain vulnerable.
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