Itaú BBA - GDP rises 0.2% in 2Q18 as underlying growth loses momentum

Macro Brazil

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GDP rises 0.2% in 2Q18 as underlying growth loses momentum

August 31, 2018

Growth negatively affected by the truckers’ stoppages in May

For the version with all charts and tables, please open the attached pdf file 
 

Brazilian GDP expanded 0.2% qoq/sa in 2Q18 and 1.0% yoy, printing between the median of market expectations (0.1% qoq/sa) and our forecast (0.3%).

From a demand standpoint, the breakdown shows deceleration. Fixed capital investment fell 1.8% under tighter financial conditions, while household spending advanced 0.1% (down from 0.4% in the previous quarter).

We expect GDP to grow 1.3% in 2018 and 2.0% in 2019, assuming that underlying growth in economic activity continues to lose momentum.


 

Artur Manoel Passos
Alexandre Gomes da Cunha

 

For the version with all charts and tables, please open the attached pdf file 



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