Brazil’s Gross Domestic Product or GDP has expanded faster than expected in the first quarter of this year. It had brought Latin America’s biggest economy back to where it was before the pandemic started at the end of the year 2019. Official data released on Tuesday stated the economy had grown to 1.2 percent from the previous quarter when it had expanded to around 3.2 percent.
As compared with the same quarter of last year, the economy had grown 1 percent only. Gustavo Cruz, a strategist at RB Investimentos, said that the growth was quite surprising if you think that a little less than a month ago, most economists believed that there would be a fall. The incident will spur hopes of a faster recovery for Brazil’s.
Following the results, which were stronger than expected, which the analysts qualified to the country’s booming agricultural sector, an uptick into the fixed investment, and looser hygienic restrictions, numerous economists said that they were reviewing their predictions for an annual growth rising to 4 percent, from about 3 percent at this time.
Economists at the IBGE, the National Statistics Bureau, said that although GDP growth in the first quarter of the year had returned to the pre-pandemic levels, it was “still 3.1% lower than the highest point of the economic activity which was reached in the first quarter of 2014”.The rising optimism has also been strengthened by the two-fold threat of increasing inflation and unemployment, driving social discontent.