Brazil's GDP Rises More Than Expected in First Quarter Boosted by Farm Sector

• Brazil's economy rebounded more than expected in the first quarter, boosted by a strong farm sector, paving the way for a rosier annual outlook, although high-interest rates are still expected to trigger a sharp slowdown.
• The country's gross domestic product (GDP) expanded by 1.9% in the three months through March, rebounding from a revised 0.1% contraction in the previous quarter, data from the Brazilian Institute of Geography and Statistics (IBGE) showed.
• Growth from the prior quarter exceeded the 1.3% median forecast in a Reuters poll of economists, largely driven by a 21.6% surge in agriculture. The service sector expanded by 0.6%, while the industry declined by 0.1%.
• On the demand side, household consumption rose by 0.2%, while government spending increased by 0.3%.
• Compared to a year earlier, Latin America's largest economy grew by 4.0% in the first quarter, also more than the projected 3.0% expansion.
• Notably, private economists surveyed weekly by the central bank have also improved their GDP estimate, now predicting 1.26% growth that still represents a sharp deceleration from the 2.9% increase in 2022.

(Source: Reuters)