In the third quarter of 2017 Brazil’s gross domestic product expanded 0.1 per cent from the second quarter and 1.4 per cent from the previous year, said IBGE (the national statistics agency) on Friday (Dec.1). The traction gaining of the country’s economic recovery was supported buy steady family consumption and a rebound in investments.
Brazil has been recovering from a deep recession, and the figures, when looked at the breakdown, raises the prospect of faster growth for next year. Investment, for example, rose 1.6 per cent in 3Q (over same period, previous year), the first positive reading since 2014.
The Central bank has been implementing strong monetary easing measures that is expected to bring interest rates to an all-time low when Copom meets next week. Inflation remains well below the official target and unemployment is falling, which bodes well for domestic demand advancing forward.