WEBINAR ON DEMAND:

Webinar Overview

Brazil’s real GDP increased by 1% y/y in Q1 2021, following four consecutive quarters of decline. The country’s economy was given a huge boost from gross fixed capital formation (investment spending), which increased at the faster pace of 17% y/y. In contrast, household consumption continued declining, reflecting lower cash transfers from the central government and a growing inflation. Many indicators have increased on the back of a low base effect, which may remain in Q2. Hence, the GDP is expected to grow substantially in 2021, by 3.96% y/y, recovering part of the economic activity lost in 2020.

ISI Emerging Markets Group Brazil Research Economist, Adriano Morais, explores the performance of the economy in Q1 2021, and what the high-frequency indicators of the economy are signalling.