Brazil's economy is strengthening; Bolsonaro hails GDP report

Gross domestic product figures shows Brazil's economy grew at a faster pace than expected in the third quarter.

    Brazilian President Jair Bolsonaro tweeted that the GDP figures, together with other positive economic indicators and record-low interest rates, suggest South America's largest economy is firmly on 'the right track' [File:Brendan Mcdermid/Reuters]
    Brazilian President Jair Bolsonaro tweeted that the GDP figures, together with other positive economic indicators and record-low interest rates, suggest South America's largest economy is firmly on 'the right track' [File:Brendan Mcdermid/Reuters]

    Brazil's economy is no longer stalling and should continue "on the right track" expanding into the end of the year as Black Friday and Christmas sales spur consumer spending, the Ministry of the Economy and President Jair Bolsonaro said on Tuesday.

    With figures showing a faster pace of growth than expected in the third quarter, the ministry said the outlook for Latin America's largest economy is brightening, while Bolsonaro also tweeted his satisfaction.

    More:

    "The slowdown in economic activity is behind us, and the economy is now growing more vigorously," the ministry's economic policy secretariat said in a statement. "Today's figures show the economy heating up, which should be reinforced later this year. Christmas 2019 should be the best of recent years."

    Brazil's gross domestic product (GDP) grew by 0.6 percent in the July-September period, according to official figures released on Tuesday, faster than the 0.4 percent predicted in a Reuters poll of economists and the strongest growth since early last year.

    Bolsonaro tweeted that the GDP figures, together with other positive economic indicators and record low-interest rates of 5.0 percent, suggest Brazil is firmly on "the right track".

    Some economists raised their outlook for Brazil's economy after Tuesday's GDP report. Goldman Sachs upped its 2019 growth outlook to 1.2 percent from 1.0 percent, and next year's forecast to 2.3 percent from 2.2 percent, while Barclays did the same for this year and said it could raise its 2020 forecast of 2.3 percent.

    SOURCE: Reuters news agency