The Brazilian economy romped out of recession in the first quarter, posting its fastest growth rate in nearly four years and raising Michel Temer’s hopes of staying as president despite a corruption scandal.
Brazil’s GDP grew by 1 per cent in the first quarter compared with the previous three months, marking the fastest rate of expansion since the second quarter of 2013.
Minutes after the figures were released, Mr Temer, who has faced calls to resign after he was put under investigation by the supreme court, tweeted: “The recession is over! It’s the result of the measures we are taking. Brazil is growing again and will grow even more with the reforms.” He has a legislative agenda that is seen as crucial for balancing the budget but which has faced opposition in Congress.
Henrique Meirelles, the finance minister, said: “There is still some way to go before a full recovery but we’re in the right direction.”
Analysts still believe that Brazil, where 14 million workers are unemployed, will grow by only 0.5 per cent over the full year and will lag its growth potential for at least another year. The economy contracted by 0.4 per cent in the first quarter compared with the same period the previous year.
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The rebound in its fortunes was led by bumper crops of soy and corn, which helped bring about the fastest increase in agricultural output since 1996. The services sector was flat and manufacturing grew slightly, helped by higher exports.
Brazil has had its deepest economic decline since records began in 1901 with the economy contracting by more than 3 per cent in each of the past two years.
Mr Temer’s predecessor, Dilma Rousseff, was impeached for breaching budget rules last year. Mr Temer was accused last month of condoning the payment of bribes to silence a key witness in a corruption investigation.