Brazil's economy grows 1.9% in 1st quarter

By Ovunc Kutlu

ISTANBUL (AA) - Brazil’s economy grew 1.9% in the first quarter of this year, compared to the previous quarter, according to official figures released Thursday by the Brazilian Institute of Geography and Statistics (IBGE).

The figure came higher than the market estimate of a 1.3% increase, while South America's biggest economy expanded 0.5% in the fourth quarter of last year.

The agriculture sector surged 21.6% in the first quarter and the services sector grew 0.6%, but industry contracted 0.1%, according to the IBGE figures.

In the first quarter of 2023, the investment rate was 17.7% of the gross domestic product (GDP), the agency said in a statement. The savings rate, meanwhile, was 18.1% of the GDP.

Annually, GDP in the first quarter showed an increase of 4%, compared to the same quarter of last year.

That also came higher than the market estimate of a 2.7% increase, after the GDP posted an annual gain of 1.9% in the first quarter of 2022.

In the January-March period of this year, the agriculture sector expanded 18.8% on an annual basis, while services and industry grew 2.9% and 1.9%, respectively.