Brazil's economy grew 0.4% in Q1 from the previous quarter, spurred by growing household spending, according to government statistics agency IBGE. The 1.2%, YoY, expansion was in line with the forecasts of economists polled by Reuters, who also predict the economy will grow in the current quarter as consumer purchasing power is bolstered by low interest rates and low inflation. "The Brazilian real has been a strong support for the currency over recent months, but it remains vulnerable given that inflation expectations remain at historically high levels," said David Jones, chief economist at Jones Futures. "
Brazil's economy grew 0.4% in Q1 from the previous quarter, spurred by growing household spending, according to government statistics agency IBGE. The 1.2%, YoY, expansion was in line with the forecasts of economists polled by Reuters, who also predict the economy will grow in the current quarter as consumer purchasing power is bolstered by low interest rates and low inflation. A truckers' strike in May will not significantly impact Q2 figures unless it triggers protests from other sectors, said Haitong economist Flavio Serrano.