ADVERTISEMENT

Brazil's economy grows 0.6% in third quarter

Brazil's economy -- Latin America's largest -- picked up pace in the third quarter, official figures showed Tuesday, beating expectations and offering relief to President Jair Bolsonaro who has made reviving growth a priority.

Jobseekers at an employment fair in Rio de Janeiro in June 2019 -- Brazil's economy grew by a better-than-expected 0.6 percent in the third quarter, but unemployment still affects 12.4 million Brazilians

After stalling in the first three months of the year, the economy has now had two consecutive quarters of growth, the statistics agency said, steering clear of a recession that had seemed likely only months ago.

Gross domestic product expanded by 0.6 percent in the July-to-September period, compared with the revised 0.5 percent in the previous three-month period.

It rose 1.2 percent from the same quarter last year.

An initial reading showing the economy contracted by 0.2 percent in the first quarter has also been revised to zero.

ADVERTISEMENT

The third-quarter figure beat expectations of analysts surveyed by the Brazilian economic daily Valor, who had predicted 0.4 percent growth.

Driving the acceleration was agriculture, industry and services, which grew 1.3 percent, 0.8 percent and 0.4 percent, respectively, from the previous quarter.

Bolsonaro tweeted that the results showed "we're on the right path," referring to the ambitious economic reforms his ultraconservative government has been pushing through Congress since taking power in January.

Bolsonaro's government and outside analysts both anticipate 1.0 percent growth for 2019, edging down from 1.1 percent in 2017 and a revised 1.3 percent in 2018.

That will be too little to put a dent in unemployment which currently affects 12.4 million Brazilians. But analysts expect stronger growth next year, and have raised their 2020 GDP estimates to 2.2 percent from 2.0 percent.

ADVERTISEMENT

After cutting interest rates to a new historic low of 5.0 percent in October, the central bank said it expected "some acceleration" in growth in the fourth quarter.

The figures come after US President Donald Trump announced plans Monday to reimpose tariffs on steel and aluminum from Brazil and Argentina, apparently blindsiding Bolsonaro, who considers himself an ideological ally of the Republican leader.

Bolsonaro has sought to play down the issue, saying he would appeal to Trump for more understanding of Brazil's position and boasting he has an "open channel" with the US leader if needed.

A wave of protests sweeping across Latin America has slowed the pace of reforms in Brazil, Economy Minister Paulo Guedes indicated in a recent interview with Brazil's Globo.

"We were on a path. Then, suddenly, the confusion in Latin America started ... the political timing begins to change," Guedes said.

ADVERTISEMENT

pt/lth/amj/jm

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

What Nigerian law says about treatment of people with disabilities

What Nigerian law says about treatment of people with disabilities

Gambling investment is evil, will take away everything - Cleric warns youths

Gambling investment is evil, will take away everything - Cleric warns youths

All teachers need to learn digital skills to earn their students’ respect

All teachers need to learn digital skills to earn their students’ respect

Lagos lawmaker begins road construction in Yaba to ease residents' plights

Lagos lawmaker begins road construction in Yaba to ease residents' plights

Over 100 inmates in Kano seek mercy, review of death sentences

Over 100 inmates in Kano seek mercy, review of death sentences

FG shuts KFC outlet that 'humiliated' Gbenga Daniel's wheelchair-bound son

FG shuts KFC outlet that 'humiliated' Gbenga Daniel's wheelchair-bound son

Reps vow to retrieve sold Govt helicopters, summon aviation ministers

Reps vow to retrieve sold Govt helicopters, summon aviation ministers

Distress of abducted Kuriga school children led to successful rescue - DHQ

Distress of abducted Kuriga school children led to successful rescue - DHQ

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT