Brazil’s GDP grows 0.8% in Q1, driven by strong agricultural performance

Brazil’s Gross Domestic Product (GDP) expanded by 0.8% in the first quarter of 2025 compared to the previous quarter, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). The growth was largely fueled by a robust 12.2% increase in agricultural output, supported by record soybean and rice harvests.

Compared to the same period in 2024, GDP rose by 2.5%, with a 2.2% expansion over the past 12 months. Sector highlights include:

• Industry grew by 1.6%, with notable gains in construction (2.4%) and electricity/gas/water services (2.1%).

• Services rose by 0.6%, led by transport (1.3%) and financial activities (1.2%).

• Household consumption increased by 1.5%, boosted by stronger credit conditions and public transfers.

• Gross fixed capital formation (investment) fell by 0.5%.

• Exports surged 6.5%, while imports declined 5.2%.

Following the release, Finance Minister Fernando Haddad expressed confidence in the country’s economic momentum, crediting coordinated fiscal and monetary policies for sustaining growth.