Brazil's economy grew at an annualized 2.9pc in the first quarter, as slowing consumption and factory output offset a rebound in farming activity.
Growth in gross domestic product (GDP) decelerated from 3.6pc in the previous quarter and was off for a second quarter from 4pc in the third quarter of 2024, according to government statistics agency IBGE.
Agriculture grew by an annual 10.2pc in the first quarter, more than offsetting a 1.5pc contraction in the last quarter of 2024. The increase in the sector was led by good crop performance and a rise in the outlook for the 2024-25 crop, IBGE said.
The industrial sector expanded by 2.4pc, slightly slower than 2.5pc in the prior quarter. Manufacturing decelerated to an annual 2.8pc in the first quarter from 5.3pc in the previous quarter.
Electricity and gas, water and sewage management increased by 1.6pc following a 3.5pc contraction in the last quarter of 2024. The sector was led by higher residential demand, IBGE said.
The oil, natural gas and mining industries grew by 0.2pc following a 3.6pc contraction. The sector's gain was led by oil and gas exploration, but was slowed by a drop in iron ore mining, IBGE said.
Construction decelerated to an annual 3.4pc from 5.1pc in the previous quarter. Household consumption decelerated to 2.6pc from 3.7pc in the earlier quarter, while government spending eased to 1.1pc from 1.2pc.
Exports rose by 1.2pc from a 0.7pc contraction in the previous quarter, while imports decelerated to 14pc from 16pc. Brazil posted higher vehicles, oil products and agriculture exports, while the country's imports were led by transport equipment, machinery and chemicals, IBGE said.
Gross fixed capital formation — which measures how much companies increased their capital goods — decelerated to an annual 9.1pc from 9.4pc.
