Brazil’s gross domestic product (GDP) surprised, recording a growth of 0.9 per cent in the last quarter and exceeding the expectations of analysts who had forecast a more modest growth of 0.2 per cent, as reported by Brasil 247, a partner of TV BRICS.

This turn of events has prompted revisions to economic growth forecasts for 2023, indicating an optimistic scenario for the country’s economy. Analysts believe Brazil’s economic growth could reach nearly 4 per cent.

Alberto Ramos, director of the financial conglomerate, notes that the GDP figures for the second quarter were unexpected, especially in the agricultural sector, where the contraction was smaller than expected. This signals a possible reversal in the next economic indicators. At the beginning of the year, forecasts pointed to growth of just 0.8 per cent, but now Brazil is on track to break the 3 per cent mark.

Ramos emphasises that many factors have contributed to this robust performance, including fiscal stimulus in the early months of Lula da Silva’s government. For example, the Bolsa Família programme reached three times more population.

However, Ramos warns that the Brazilian economy cannot rely on such growth rates indefinitely. He predicts a period of slowdown in the coming semesters due to household debt, restrictive monetary policy. If Brazil manages to maintain its growth rate, even despite these difficulties, it could achieve growth of 4 per cent by the end of the year.

Photo: IStock