Brazil’s economy rebounded in the first quarter from a sluggish second half of 2023 on stronger investments and consumer demand, official figures showed, adding to caution at the central bank, which has slowed the pace of interest-rate cuts.
The data boosted the outlook for Latin America’s largest economy, but concerns remain about the impact of disastrous flooding in southern Brazil last month, which left a trail of destruction, opened the door to more government spending and pushed up food prices.
Brazil’s gross domestic product (GDP) expanded by 0.8 per cent in the three months through March, gaining momentum from a revised 0.1 per cent contraction in the prior quarter, according to the government statistics agency IBGE.
