The Brazilian Institute of Geography and Statistics (IBGE) announced on Tuesday (3) that the Gross Domestic Product (GDP) grew by 1.4% in the second quarter of this year compared to the first quarter.
On a year-on-year basis, GDP recorded a growth of 3.3% compared to the second quarter of 2023. During the months of April, May and June of this year, industry was the most prominent sector, with an increase of 1.8% compared to the previous quarter, followed by the service sector, which grew by 1%.
On the other hand, agriculture experienced a 2.3% drop compared to the first quarter of 2024 and a 2.9% decline compared to the same period in 2023. With the announced results, GDP reached a total of R$ 2.9 trillion this year, of which R$ 2.5 trillion corresponds to Value Added at basic prices and R$ 387.6 billion to taxes on products. The investment rate in the second quarter, a key indicator of good economic performance, stood at 16.8% of GDP, above the 16.4% recorded in the same quarter of 2023.
The outstanding performance of industry is attributed to the electricity, gas, water, sewage and waste management sectors, which recorded an increase of 4.2%, followed by construction, with a growth of 3.5%, and processing industries, which rose by 1.8%. In contrast, the extractive industries experienced a decline of 4.4% in the second quarter compared to the first.
In the services sector, financial, insurance and related services grew by 2%, while information and communication technologies increased by 1.7%. Trade grew by 1.4%, followed by transport, storage and mail, which recorded growth of 1.3%. Other segments, such as public administration, defence, health and education, as well as social security, grew by 1%, while real estate and other commercial activities grew by 0.9% and 0.8% respectively.
In foreign trade, IBGE reported that exports of goods and services grew by 1.4% in the second quarter compared to the first, while imports increased by 7.6% in the same period.
Economic Recovery
Felipe Queiroz, chief economist at the São Paulo Association of Supermarkets (Apas), welcomed the results, noting that they exceeded market expectations. “The Brazilian economy has experienced remarkable growth, driven mainly by the supply side, with the industry showing a very significant and robust recovery. The exchange rate has provided additional protection for our local industry against some international competitors, and the services sector has also contributed to growth,” he noted.
