* Brazil’s national statistics institute (Ibge) has announced that the country’s GDP grew by 1.9% in the first quarter of 2023 compared with the preceding quarter, in seasonally adjusted terms. GDP was also up by 4.0% compared with Q1 2022. The growth exceeded market expectations, which had been dampened by high interest rates. The impact of Brazil’s tight monetary policy appears to have been outweighed by strong quarterly growth in agriculture, where output was up 21.6%. Meanwhile, the services sector expanded by 0.6% and the industrial sector marginally contracted by 0.1%. Nevertheless, market analysts consulted by Bloomberg predicted that the strong economic performance registered during President Luiz Inácio Lula da Silva’s first three months in office would not last, citing the lingering effects of high interest rates and an expected reduction in agricultural output later this year.
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