BUENOS AIRES, Sept 2 Reuters Brazil39;s economy kept growing at a solid pace last quarter compared to the first three months of the year, supported by household expenditure, a Reuters poll predicted.
But higher imports of goods and services likely weighed on the country39;s growth after surpassing lessdynamic exports at the start of 2024 due to a strong foreign exchange rate, which has depreciated recently.
Secondquarter gross domestic product figures, scheduled for Tuesday, are forecast to show a 0.9 expansion versus the JanuaryMarch period, when the economy advanced 0.8, according to the median forecast of 18 analysts polled Aug. 28Sept. 2.
We estimate the Brazilian economy grew 0.9 on the quarter, 2.7 yearly… likely supported by resilient private consumption benefiting in part from strong labor markets and rising real wages, Barclays economists wrote in a report.
While public spending contributed with an increase in social benefit payments, as well as aid related to floods in April and May, on the downside, the external sector was likely a drag for growth due to higher imports, they added.
In a report, Santander analysts saw a 7.8 quarterly rise in imports versus a much lower 1.3 gain in exports. In the first quarter, imports and exports grew 6.5 and 0.2 respectively, as Brazilians piled into foreign goods and services.
Meanwhile, from the point of view of supply, total industrial production, including mining, should have expanded by 1.2, an advance partly…