The Brazilian economy accelerated sharply in the third quarter as record-low interest rates and a one-off government-led boost helped it bounce back from the impact of a nationwide truckers’ strike. Gross domestic product rose 0.8% from the second quarter and 1.4% from the third quarter of 2017, government statistics agency IBGE said on Friday.
Brazilian markets surged on Tuesday as stronger polling for far-right presidential candidate Jair Bolsonaro and a Congressional farm caucus endorsement boosted expectations that he may block the leftist Workers Party from returning to power.
Brazil stocks were lower after the close on Thursday, as losses in the real estate, industrial and financial sectors sectors led shares lower. At the close in Sao Paulo, the Bovespa index lost 0.01%.
Brazil's economy grew 0.57% in July from June, Brazil's Central Bank said citing the Economic Activity Index (IBC-Br). The data shows a second consecutive month of GDP growth in South America's largest economy.
In Brazil, the Real currency and benchmark Bovespa stock index strengthened slightly on Wednesday. Political uncertainty in Brazil took a toll after judicial authorities canceled the release of a closely-watched opinion poll on technical grounds.
The Brazilian real led losses among Latin American currencies on Monday after an opinion poll showed the market's preferred candidate in October's presidential elections lagging far behind his rivals. The Real was down 0.76% and 15.98% in the eight months of the year.
Brazilian President Michel Temer said on Thursday there was no risk of a currency crisis in Latin America's largest economy despite sharp falls in the exchange rate, while the central bank chief pledged to maintain the bank's intervention in the market.
The Brazilian currency has fallen to its lowest level against the dollar in more than two years, amid rising investor worries over recent economic and political turmoil. The Real is down 14% this year, near its lowest levels since March 2016. On Wednesday in New York, the dollar bought 3.8534 Reais, versus 3.8087 Reais late Tuesday.
The growth of manufacturing activity in Brazil slowed for a second straight month in May, a private survey showed on Friday, a sign that a weaker currency and political uncertainty are taking a toll on Latin America's largest economy.
The number of people living in Brazil in a state of helplessness has reached record levels and has actually contributed to the reduction of the unemployment rate over the past 12 months. As the first quarter of 2018 came to an end, 4.6 million people found themselves in a state of helplessness – an increase of 511 thousand people over the course of one year.