Good morning! Today, we bring you fresh GDP data — released just minutes ago. Also, job market trends and how Brazilians feel less safe with more guns.
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Growth continues in Q2
Today’s GDP report beat expectations, with official statistics agency IBGE reporting 1.2-percent economic growth during Q2 2022. With recent data revisions, the result extends Brazil’s positive growth streak to four quarters.
Highlights. Notable improvements came from the industrial sector (+2.2%), family consumption (+2.6%), and investments (+4.8%). The agribusiness sector, however, posted lackluster growth (+0.5%).
Why it matters. The result comes a month before Election Day and will certainly be used by President Jair Bolsonaro to try to persuade voters that the economy is on the right track.
Yes, but … The economy is improving but it comes from a very negative baseline — overall conditions remain daunting.
Future. For the second half of the year, markets expect economic activity to slow down due to the effects of the Central Bank’s monetary tightening process. Implemented to tame inflation, such measures take...