Indicators

Brazil Economy Beats Forecasts Again as Consumers Spend Big

  • Economy expanded 0.9% q/q and 4% y/y in third quarter
  • Investors worry that Brazilian economy is overheating
Shoppers at the Barra Shopping mall in Rio de Janeiro.Photographer: Lucas Landau/Bloomberg
Lock
This article is for subscribers only.

Brazil’s economy once again shot past expectations in the third quarter, bolstered by hefty consumer and government spending that’s fanning above-target inflation and rattling markets.

Official data released on Tuesday showed that gross domestic product expanded 0.9% in the July-September period compared to the second quarter. The expansion came on the back of robust domestic demand that has held firm in the face of double-digit borrowing costs.