KL Winterbourne Associates - Brazil Records Better Than Expected Growth in Q1

Brazilian economic growth surprises in first quarter as economy returns to pre-pandemic level.

Tokyo, Japan, June 03, 2021 --(PR.com)-- In the first quarter of this year, Brazil’s economy continued its rebound from the global health crisis, recording better than expected growth. Economists at KL Winterbourne Associates had expected Brazil’s economy to grow by 0.7 percent during the period from January to March this year.

However, with much of the Latin American country’s population choosing not to stay at home during the vicious third wave of coronavirus infections, the economy expanded by 1.2 percent from the previous quarter.

KL Winterbourne Associates analysts say the growth was led by strong activity in the agricultural sector which expanded 5.7 percent in the first quarter. There was also an increase in investments which helped fuel the ongoing rebound.

Recently released data revealed that services and investments had helped return the economy to its pre-pandemic state and although the rate of rebound has slowed, economists are optimistic.

“A slowing in the pace of recovery is to be expected,” said Mr. Taku Ishikawa, Chief Finance Officer at KL Winterbourne Associates. “The real good news is that the data indicates that there is a strong base for an ongoing recovery.”

Earlier this week Brazilian Economy Minister, Paulo Guedes stated that Brazil is on track register very strong growth in 2021.

Currently, a number of positive factors are supporting Brazil’s economic growth. A more positive global economic outlook, robust private sector investment, an increase in personal savings and growing employment opportunities as restrictions are eased are facilitating a better than anticipated return to growth.

Brazil has recently accelerated its efforts to rollout vaccines and has been working to improve its COVID-19 protocols which will likely help to ensure continued expansion during the course of this year.
KL Winterbourne Associates
Mr. Shohei Muramatsu