Brazil’s economy grows 0.5% in second quarter of 2026

The Brazilian economy grew 0.5 percent in the second quarter of 2026 compared with the first quarter. According to IBGE, Brazil’s government statistics agency, GDP reached BRL 3.4 trillion during the period. The data were released on Tuesday (Sep. 1).

Compared with the second quarter of 2025, the total value of goods and services produced in the country rose by 2 percent.

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Over the past four quarters, GDP expanded by 1.9 percent.

The Focus bulletin, a Central Bank survey of financial market institutions released on Monday (Aug. 31), projects 1.92 percent GDP growth for 2026.

Production

GDP can be calculated from the perspective of production, which analyzes economic activity, or expenditure, which includes consumption and investment.

From the production perspective, agriculture and livestock stood out, with a 2.8 percent increase from the first to the second quarter. Over 12 months, the increase reached 6.2 percent.

Manufacturing rose 0.1 percent from the first to the second quarter and 1.4 percent over 12 months, with the extractive industry standing out, surging 3.4 percent quarter-on-quarter.

The services sector, which accounts for the most employment in the economy, grew 0.2 percent quarter-on-quarter and 1.7 percent over 12 months. The information and communication subsector led the increase, at 2.1 percent.

Gross Fixed Capital Formation, an indicator of investment, grew 1.2 percent during the quarter.

Demand

From the demand side, government consumption rose 0.4 percent, while household consumption declined by 0.4 percent.

In the external sector, exports fell 0.8 percent, while imports rose 1.8 percent compared with the first quarter of 2026.