Brazil’s gross domestic product advanced by 0.2% in the second quarter against the previous quarter, the second such rise in a row, the Brazilian Census Bureau (IBGE) said Friday. GDP rose 0.3% against the second quarter of 2016, the first year-on-year advance after 12 straight quarters of decline or stagnation, the IBGE said. The results came in slightly ahead of market expectations, leading economists to believe that Brazil’s economic recovery, although modest, remains on track. Brazil suffered a severe recession in 2015 and 2016. Second-quarter growth was led by services, which advanced 0.6% against the first quarter. Agriculture posted no quarter-on-quarter growth and industrial production was down 0.5%. Modest growth comes at the same time as a sharp decline in inflation rates. Tame inflation should lead the Central Bank to order more interest rate reductions, a fact or which could help spur increased growth, going forward, according to economists. The Central Bank meets next week to review rates.
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