Brazil's GDP up by 0.2 percent in second quarter

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Brazil’s Gross Domestic Product (GDP) closed the second quarter of 2017 up by 0.2 percent compared to the previous quarter, according to a report released by the IBGE (Brazilian Statistics Bureau) on Friday.

The latest GDP, along with other positive economic data, such as the declining unemployment, show a slight recovery of the Brazilian economy.

According to the report, the GDP in the second quarter totaled 1.639 trillion reals (520 billion US dollars), up 0.3 percent year-on-year. In the first half of 2017, the GDP remained stable compared with the same period last year.

The IBGE did not consider the second quarter results a recovery per se. However, the positive figures represent a continuation of the growth registered in the first quarter.

Brazil has long suffered from economic recession and the results recorded in the first two quarters of this year may be a sign that the economy will get back on track.

Photo via The Rio Times

In the second quarter of 2017, the agricultural sector remained stable compared with the same period last year, while the industrial sector shrank 0.5 percent. The services sector, on the other hand, grew by 0.6 percent in the same period.

Families' consumption totaled 1.02 trillion reals, up 1.4 percent from the first quarter and stable as compared with the second quarter of 2016. Governmental expenses were down 0.9 percent from the first quarter and 2.4 percent from the same period last year, amounting to 336.1 billion reals.

Investment fell 0.7 percent from the first quarter and 6.5 percent from the same period in 2016, totaling 253.9 billion reals.

While some indicators have shown signs of improvement, the Brazilian economy is still in a delicate situation, and it will be long before it returns to the prosperity it enjoyed years ago.

Photo via The Rio Times

Despite the advances achieved in the past two quarters, retail sales are on the same level as in 2012, services are below the 2012 level, and the number of formal jobs in the country is roughly the same as in 2013.

On Thursday, the IBGE released the latest unemployment rate for the second quarter, which showed a slight decrease of 0.8 percentage points from 13.6 percent from February to April to 12.8 percent from May to July.

According to the bureau, Brazil today has approximately 13.3 million people unemployed.

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