Brazil economy grows 0.5% in August after two months of contraction

The Brazilian economy expanded by 0.5% in August compared to July, marking a recovery after two consecutive months of decline. According to the PIB Monitor from the Getulio Vargas Foundation (FGV), this growth brings the 12-month cumulative performance to 1.8%.

On the supply side, the expansion was driven by the extractive industry and the continued growth of the services sector. Regarding demand, positive contributions came from exports and government consumption, which helped offset a deceleration in household consumption. Household consumption grew by 0.4% in the quarter ending in August, primarily supported by durable goods.

Economist Claudio Considera noted that despite persistent inflation and a contractionary monetary policy characterized by high interest rates, the economy shows signs of recovery capacity. In current values, the FGV estimates the accumulated GDP from January to August at R$ 9.020 trillion.