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Brazil economy expands 5.8 percent in 1st quarter, boosted by consumers, investment

Brazil economy expands 5.8 percent in 1st quarter, boosted by consumers, investment

Brazil's economy expanded at a rapid clip of 5.8 percent in the first quarter as consumers continued a spending spree and businesses invested heavily to meet demand, the government said Tuesday.
The increase beat most analysts' expectations.
Over the 12-month period ending in March, gross domestic product for Latin America's largest country and economy rose by 5.8 percent, the Brazilian Institute of Geography and Statistics said.
That marks an increase over the 5.4 percent rate for all of 2007, though analysts believe Brazilian growth may slow later this year following a recent interest rate hike by the central bank aimed at reducing inflation.
The institute said Brazilian family consumption rose for the 18th consecutive quarter, boosted by higher salaries and easier credit that are helping millions buy cars and homes for the first time.
The industrial sector led Brazilian growth in the first quarter, increasing 6.9 percent over the same period a year ago. Services rose 5 percent and agriculture was up 2.4 percent.
With high global demand for food, Brazilian agribusiness is expected to increase corn production by 11.4 percent this year, the institute said. Rice production will likely rise 8.6 percent and soy will go up 2.6 percent.
The biggest increase in the industrial sector was for civil construction, which rose 8.8 percent compared to the same quarter a year ago, the largest rise since 2004, the institute said.


Updated : 2020-12-02 12:29 GMT+08:00