SÃO PAULO—Brazil's economy shrank less than
expected in the first quarter as the country's agricultural and
mining sectors grew rapidly.
Gross domestic product contracted 0.2% in the first quarter from
the last quarter of 2014, the Brazil's statistics agency said
Friday. GDP shrank 1.6% from the first quarter of last year.
The median forecast of 16 economists surveyed by The Wall Street
Journal was for a contraction of 0.5% in the first quarter from the
fourth quarter.
The better-than-expected result is small relief for President
Dilma Rousseff, who faces a year of weak economic growth and
probably a recession amid high interest rates, high inflation, tax
increases and unpopular budget cuts.
Brazil is one of the world's agricultural superpowers, and the
sector outperformed the rest of the economy in the first quarter
with an expansion of 4.7% from the fourth quarter of last year and
4% from a year earlier.
Mining and petroleum were another bright spot, with an expansion
of 3.3% from the previous three months.
Mining giant Vale SA posted record iron ore production in the
first quarter, and state-controlled oil company Petroleo Brasileiro
SA, or Petrobras, also increased output.
Ms. Rousseff's efforts to cut the government's budget deficit
led to a decline of 1.3% in government spending in the first
quarter, and consumers cut back as well, spending 1.5% less
compared with the fourth quarter of 2014.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
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