02.09.202512:14:53UTC+00Brazil GDP Expands Furter

Brazil's gross domestic product (GDP) grew by 0.4% in the second quarter of 2025 compared to the previous quarter. This growth rate represents a slowdown from the revised 1.3% increase seen in the first quarter, yet it slightly surpasses market predictions of a 0.3% gain. This expansion was primarily driven by household consumption, which increased by 0.5%—a deceleration from the 1% growth in the first three months of the year. The sustained strong consumer spending can be attributed to substantial fiscal support programs for households that have helped counterbalance the central bank's high real interest rates. Conversely, government consumption witnessed a decline of 0.6%, following a stagnation in the first quarter. On the external front, exports climbed by 0.7%, likely fueled by shipments of raw materials to the U.S., as international firms accelerated trade to circumvent tariffs. Simultaneously, imports fell sharply by 2.9%, thereby yielding a significant positive impact from net external demand on the GDP.