Brazil’s Economic Rebound Faces Risks, Giving President Lula Reason to Worry

  • GDP grew 0.8% q/q and 2.5% y/y in first months of 2024
  • Government transfers helped to lift spending in first quarter
Shoppers at a market in Rio de Janeiro.Photographer: Dado Galdieri/Bloomberg
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Once again, the Brazilian economy started the year with a bang, beating forecasts and giving President Luiz Inacio Lula da Silva reason to celebrate. This time around, the win is likely to be far less enduring.

After half a year of stagnation, gross domestic product grew 0.8% in the first quarter compared to end-2023, the national statistics agency said on Tuesday. Investment, agriculture, family consumption and services posted solid gains.