Brazil's May GDP rises 0.7% driven by household consumption
Brazil’s Gross Domestic Product grew 0.7% in the month from April to May 2026, according to the monthly Monitor do PIB released by the Institute of Brazilian Economics (Ibre) of the Fundação Getulio Vargas (FGV). The quarter‑on‑quarter increase was 1.9% and the twelve‑month cumulative gain stood at 1.7%.
The expansion was led by household consumption, which rose 3.3% in the quarter ending in May – the strongest pace since the fourth quarter of 2024 – and accounted for more than 60% of the overall growth, especially in services and durable‑goods sectors. Analysts note that despite the rebound, several “fragilities” are emerging: agro‑production is still lagging after a series of contractions, industrial activity shows loss of momentum, export growth has slowed, and investment remains modest. Inflation expectations for 2026 have been revised down to 5.15%.
The data suggest the economy is back on a modest expansion path, but underlying weaknesses could temper future performance.