MercoPress. South Atlantic News Agency

Brazil's economy grows 0.1% in Q3 of 2025

It was the 17th straight quarterly expansion, the IBGE noted

Brazil's economy expanded by 0.1% in the third quarter of 2025 compared with the previous quarter. Year-on-year, Brazil's Gross Domestic Product (GDP) —the measure of the total value of goods and services produced in the country—rose by 1.8%. Over the past four quarters, GDP registered cumulative growth of 2.7%, according to a Brazilian Institute of Geography and Statistics (IBGE) report released this week.

The quarterly increase was deemed “stable,” or not significant. However, it marked the 17th consecutive quarterly expansion.

From the second to the third quarter, Brazil's industry posted the highest growth (0.8%), followed by agriculture (0.4%). The performance of services, which account for the largest share of GDP, remained virtually unchanged at 0.1%.

Transportation, Storage, and Mail accounted for a 2.7% growth, followed by Information and Communications (1.5%), and Real Estate (0.8%).

IBGE Quarterly Accounts analyst Claudia Dionísio explained that Transport's performance reflected the flow of mineral and agricultural production.

In the quarter, Commerce, which is also part of the services sector, grew by 0.4%. Extractive Industries grew by 1.7%, Construction by 1.3%, and Manufacturing by 0.3%, while Electricity and Gas, Water, Sewage, and Waste Management declined by 1.0%.

On the expenditure side, Household Consumption remained virtually stable, increasing by 0.1%, while Government Consumption grew by 1.3%.

Gross Fixed Capital Formation (GFCF), an indicator measuring the expansion of a country's productive capacity through investment, rose by 0.9%.

GDP allows for tracking the economic performance of a country, state, or city, as well as making international comparisons. It is calculated using various sectoral surveys, such as those for trade, services, and industry. During GDP calculation, care is taken to avoid double counting.

For example, if a country produces R$100 of wheat, R$200 of wheat flour, and R$300 of bread, the GDP will be R$300, since the values of the wheat and flour are already included in the value of the bread. The final goods and services that make up GDP are measured at the prices at which they reach consumers, including any taxes levied.

GDP helps to understand a country's economic reality, but it does not reflect factors such as income distribution or living conditions. (Source: Agencia Brasil)