Halister News

(Bloomberg) -- 2Q GDP to show zero q/q growth, while consumption should partially offset worse agribusiness performance, analysts say.

• Quality of GDP results should be better in 2Q than in 1Q, since private consumption will grow for the first time in 9 quarters, Goldman Sachs Senior Economist for LatAm Alberto Ramos says by phone
• Expectation of a recovery in consumption is also highlighted by Icatu Chief Economist Rodrigo Melo and SulAmerica Investimentos Chief Economist Newton Rosa
  • Household deleveraging process is more advanced than corporate, Rosa says, pointing out that retail sales are showing impact in consumption
• Labor market and credit are showing some improvement, which helps support the economy, Rosenberg e Associados Chief Economist Thais Zara says
• 2Q data has been positive, with marginal growth in industry and services, Haitong Senior Economist Flavio Serrano says
• Summing up, while 1Q GDP growth was bigger, it was too dependent on agribusiness, while 2Q growth should be lower, but with a more leveled performance across sectors, Rabobank Strategist for Brazil Mauricio Oreng says, adding that recovery will be gradual
• A flat performance in 2Q confirms that political crisis started in May didn’t have a big impact in economic activity, Credit Agricole EM Strategist Italo Lombardi says

To contact the reporters on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net; Josue Leonel in Sao Paulo at jleonel@bloomberg.net; Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net