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Brazil’s Economy Disappoints After Bolsonaro’s Stimulus Push

  • GDP grew 0.4% q/q and 3.6% y/y in third quarter: stats agency
  • Brazil’s economy may lose momentum as tax cut impact fades

A pedestrian walks past a building on Faria Lima Avenue in the financial district of Sao Paulo, Brazil, on Friday, Sept. 1, 2022.

Photographer: Victor Moriyama/Bloomberg
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Brazil’s economic growth fell short of expectations in the third quarter after a multi-billion dollar fiscal stimulus package expanded welfare for the poor and slashed taxes.

Official data released on Thursday showed gross domestic product expanded 0.4% in the July-September period from the previous quarter, below the 0.6% median estimate from analysts in a Bloomberg survey. From a year ago, the economy grew 3.6%.