Business

Has the Brazilian economy peaked in 2022 already?

Q1 GDP results were far from stellar. And many economists believe they will be the high point of the economy this year

gdp growth brazilian economy
The services sector was the best-performing onw in Q1 2022. Photo: Lucas Seixas/Folhapress

The Brazilian economy grew by 1 percent in Q1 2022, per the country’s latest GDP report. And while in line with the median forecast of 82 consultancies surveyed by finance newspaper Valor, the numbers fell short of the 1.5 percent tipped by respected think tank FGV-Ibre and the 1.4-percent expected by brokerage firm XP.

Quarterly performance was almost entirely underpinned by growth in the services sector, which grew 1 percent. Services make up around 70 percent of the Brazilian economy. Meanwhile, the industrial sector expanded by just 0.1 percent. 

The agribusiness sector — which anchored growth in recent years —...

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