Brazil's GDP accelerates to 1.1% in the first quarter and adds an interannual advance of 1.8%

Brazil's GDP grows 1.1% in the first quarter of 2026, an improvement compared to the end of 2025 and registers an year-on-year advance of 1.8%.

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The Brazilian economy regained traction at the beginning of 2026. The country's gross domestic product (GDP) grew by 1.1% between January and March, compared to the meager 0.1% recorded in the previous three months, which translates into an interannual expansion of 1.8%.

The data, published this Friday by the Brazilian Institute of Geography and Statistics (IBGE), reflect that the primary sector led the recovery, with a quarterly advance of 2%. Industry also evolved upwards, with an increase of 1%, while services registered a more moderate increase of 0.5%.

Within the industrial sector, the branches with the best performance were mining, with a growth of 3.6%, and construction, which rebounded by 2.9%. On the other hand, manufacturing barely varied, being limited to a 0.1% increase, and activities related to electricity, gas, water, sanitation, and waste management suffered a contraction of 0.3%.

In the services sector, advances were observed in information and communication (2.4%), in real estate activities (1.2%), in those classified as miscellaneous (0.8%), in trade (0.6%), and in public administration, defense, health, education, and social security services (0.4%).

Conversely, decreases were recorded in transport, storage, and mail, with a drop of 0.7%, as well as in financial and insurance activities, which fell by 0.6%.

From the demand perspective, household consumption increased by 1%, while gross fixed capital formation rebounded by 3.5%, indicating greater investment dynamism. Public sector spending also advanced, with an increase of 0.4%.

On the external front, the balance was less favorable: exports decreased by 1.7%, while imports increased by 4.4%, reflecting a greater absorption of goods and services from abroad in a context of more robust domestic activity.