Brazil GDP grows 1.1 percent on strong consumption
Brazil's economy grew by 1.1% in the first quarter of 2026, surpassing economist expectations of 1.0% growth. The rebound was driven by a 1.0% rise in household consumption and a 3.5% increase in investment, supported by government stimulus and a resilient labor market.
Brazil's economy expanded 1.1% in the first quarter, rebounding from a stagnant second half of last year. The growth figure slightly exceeded the 1.0% expansion forecast by economists in a Reuters poll. Strong domestic demand and increased investment suggest the region's largest economy is gaining momentum despite global headwinds.
### Consumption and Investment Drive Growth Household consumption rose 1.0% during the January-March period, serving as the primary driver for the expansion. IBGE statistics agency data showed that government stimulus and a tight labor market supported disposable income. Policies under President Luiz Inacio Lula da Silva, including expanded income tax exemptions, further bolstered middle-class spending power.
