Brazil’s GDP shrinks 0.1% in the 2nd quarter

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O Gross Domestic Product (PIB) do Brasil registered a slight decline in the second quarter of this year, losing strength from the first three months of 2021 and stabilizing after three straight quarters of gains.

In the second quarter, GDP dropped 0.1% compared to the previous three months, according to data from the Brazilian Institute of Geography and Statistics (IBGE) released this Wednesday. In the first quarter, the Brazilian economy had advanced 1.2%.

The expectation in a survey by Reuters was a growth in the second quarter of 0.2%, in the quarterly comparison.

Compared to the second quarter of 2020, GDP expanded by 12.4%, compared to an expected increase of 12.8% on this basis of comparison.

“We maintain our GDP forecast around 5% for the end of the year, it is enough to grow 0.5% per quarter to reach this result. However, it is worth noting that if we observe the growth in the year itself, the expected variation for the end of this year is not 5%, but close to 2%,” stated André Perfeito, chief economist at Necton Investimentos.