5/30/2014 4:56:59 PM

Brazilian economy expanded 1.9 percent year-on-year in the first three months of 2014, down from an upwardly revised 2.2 increase in the previous quarter, as higher government spending offset a drop in investment.

On the production side, agriculture accelerated for the second consecutive quarter to 2.8 percent year-on-year, boosted by higher production of soybeans (6.3 percent), rice (7.7 percent), cotton (23.5 percent) and tobacco (0.4 percent). Industrial output rose at a slower 0.8 percent, hurt by a 0.5 percent fall in manufacturing and a 0.9 percent drop in construction. The services sector grew 2 percent year-on-year, slightly up from a 1.9 percent expansion in the previous quarter. Information services recorded the highest growth rate (4.4 percent).
On the expenditure side, gross fixed capital formation contracted 2.1 percent, following a 4 percent increase in the previous quarter. Exports rose 2.8 percent and government expenditure increased 3.4 percent. Meanwhile, household consumption increased 2.2 percent.
On a quarter-on-quarter basis, the GDP advanced 0.2 percent.