Brazil's GDP Grows 1.1% in Q1 2026, Led by Agriculture and Mining Sectors
Brazil's economy expanded by 1.1% in Q1 2026, driven by strong agriculture and mining growth despite declines in exports and services sectors, signaling a moderating but positive economic outlook.
- • Brazil's GDP rose 1.1% in Q1 2026 compared to Q4 2025, reaching R$ 3.3 trillion.
- • Agriculture grew 2.0%, mining 3.6%, and construction 2.9%, driving industrial growth.
- • Services grew 0.5%, led by information and communication at 2.4%, but faced declines in transport and financial activities.
- • Household consumption increased 1.0%, investment rose 3.5%, exports fell 1.7%, while imports grew 4.4%.
- • Year-over-year GDP growth was 1.8%, reflecting a slowdown influenced by high interest rates and lowered consumption.
Key details
Brazil's Gross Domestic Product (GDP) grew by 1.1% in the first quarter of 2026 compared to the prior quarter, marking an improvement from the 0.3% growth seen in Q4 2025, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) on May 29, 2026. The economy reached a total GDP value of R$ 3.3 trillion, with R$ 2.8 trillion from value added and R$ 461.2 billion from taxes net of subsidies.
The agricultural sector was the strongest driver, increasing by 2.0%, followed by industry with 1.0% growth and services at 0.5%. Within industry, mineral extraction grew notably by 3.6%, and construction activity rose by 2.9%, while manufacturing remained nearly stagnant with a 0.1% increase. Conversely, electricity, gas, water, and sewage services declined slightly by 0.3%.
Services, which represent about 70% of Brazil's economy, showed mixed performance: information and communication rose 2.4%, real estate activities grew 1.2%, and commerce increased 0.6%. However, transportation and storage decreased by 0.7%, and financial activities fell by 0.6%.
On the demand side, household consumption rose 1.0%, and gross fixed capital formation (investment) increased by 3.5%, rebounding from the previous quarter's decline. Government consumption also grew by 0.4%, though at a slower rate than before. Meanwhile, exports dropped 1.7%, and imports expanded by 4.4% compared to Q4 2025.
Year-over-year, GDP rose by 1.8%, indicating a gradual economic slowdown, influenced by factors such as high interest rates and reduced consumption. The investment rate fell to 16.5% of GDP from 17.6% a year ago, while the savings rate decreased slightly from 15.8% to 15.5%.
Ricardo Montes de Moraes, IBGE’s National Accounts coordinator, emphasized that agriculture and mining were key contributors to the recent growth, while the services sector moderated the overall performance. This economic snapshot highlights Brazil’s gradual recovery trajectory amid a challenging global and domestic environment.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
Source articles (2)
Source comparison
Year-over-year GDP growth
Sources report different year-over-year GDP growth rates
infomoney.com.br
"Year-on-year, the GDP increased by 1.8%."
poder360.com.br
"Year-over-year, Brazil's GDP incr..."
Why this matters: One source states that year-over-year GDP growth is 1.8%, while the other does not mention this figure at all. This discrepancy affects the understanding of the economic performance over the year.