Brazil’s COVID economic rebound is stronger than expected

Latin America’s biggest economy grew 1.2 percent in the first three months of the year on a quarterly basis, led by a jump in agriculture and a surge in investment.

Brazil’s economy grew more than expected in the first quarter of 2021, continuing its rebound from a coronavirus pandemic recession as many declined to hunker down amid COVID-19’s brutal second wave. Latin America’s largest economy grew 1.2 percent from the fourth quarter, according to data the national statistics agency released Tuesday. That was above the 0.7 percent median forecast from economists surveyed by Broadcast, the real-time financial news service of Agencia Estado. The increase was led by a 5.7 percent jump in the agriculture sector, and also included a 4.6 percent surge in investments. Brazil’s economy has returned to pre-pandemic levels of activity after a 4.1 percent recession last year that was smaller than that of neighbouring countries, some of whose economies contracted by twice as much. In large part that was due to the generous pandemic welfare programme that reached about a third of the population and buoyed activity. At the same time, President Jair Bolsonaro denounced restrictions aimed at containing the pandemic, saying economic activity must not grind to a halt, and he influenced many local leaders and residents.