Brazil’s GDP expands 1.1% as investment and agriculture lift first quarter

Brazil’s economy opened 2026 with solid momentum, expanding 1.1% in the first quarter compared with the final three months of 2025, according to figures released on Friday morning, May 29, by the national statistics agency IBGE.

The data point to a broad, if uneven, advance across the country’s main productive sectors. Over the 12 months to March, gross domestic product increased 2%. Against the same quarter of last year, the economy was 1.8% larger.

In nominal terms, Brazil’s GDP reached BRL 3.3 trillion in the first quarter, equivalent to approximately USD 646 billion. The result gives investors and policymakers a clearer view of how Latin America’s largest economy began the year, particularly at a time when domestic demand, investment and the external sector are moving in different directions.

Growth spread across the main sectors

All three broad sectors tracked in the national accounts posted quarterly growth. Agriculture expanded 2%, industry grew 1%, and services rose 0.5%.

Agriculture’s performance helped set the tone for the quarter, reflecting the continued weight of Brazil’s farm economy in overall activity. The sector is smaller than services in its direct share of GDP, but it has powerful links to logistics, trade, machinery, inputs and exports.

Industry, which represented 23% of GDP in the first quarter, also contributed to the advance. Within the sector, the strongest support came from mineral extraction, up 3.6%, and construction, which grew 2.9%. Those figures matter beyond the headline GDP number. Mining is closely tied to global commodities demand, while construction tends to reflect domestic credit conditions, infrastructure activity and confidence among companies and households.

Services, by far the largest part of the economy, accounting for 70% of Brazilian GDP, continued to grow, though at a more moderate pace. The segment was supported by information and communication, which rose 2.4%, real estate activities, up 1.2%, other service activities, up 0.8%, and trade, which increased 0.6%.

The services result shows that domestic activity remains resilient, but not overheated. For businesses, the details are important. Technology related services are expanding faster than the sector average, while trade continues to move forward at a steadier pace.

Investment rises, trade balance weighs on activity

On the demand side, household consumption expenditure increased 1% from the previous quarter. That is a meaningful signal in an economy where consumer spending is a central driver of activity.

Investment also improved. Gross fixed capital formation, the national accounts measure that captures investment in machinery, equipment, construction and other productive assets, rose 3.5% in the quarter. For companies evaluating Brazil, this is one of the more relevant numbers in the release. Rising investment can suggest that businesses are adding capacity, modernising operations or preparing for future demand.

Government consumption increased 0.4%, adding a smaller but positive contribution to the overall result.

The external sector moved in the opposite direction. Exports fell 1.7%, while imports rose 4.4%. That combination can subtract from GDP growth, even when it may also point to stronger domestic demand for imported inputs, machinery or consumer goods.

For Brazil, the export figure will be watched closely in the coming quarters, especially given the country’s exposure to agricultural commodities, minerals, oil and manufactured goods. A decline in exports does not necessarily change the broader economic picture on its own, but it can affect sector performance and regional activity in states tied closely to global markets.

What the numbers mean for business in Brazil

The first quarter data show an economy still expanding, with gains across production, consumption and investment. The pace is not explosive, but it is broad based. Agriculture and industry provided visible support, services continued to grow from a very large base, and investment posted a strong quarterly increase.

For investors, the composition of growth may be as important as the 1.1% headline. Construction, mineral extraction, information and communication, real estate and trade all recorded positive movement. These are areas with different risk profiles, capital needs and regional footprints, which means the GDP data can help guide more specific market analysis.

Brazil remains a complex market, but the latest numbers underline why it continues to command attention. Its economy is large, diversified and deeply connected to global supply chains, while also being powered by a substantial domestic consumer base.

Connect with Brazil Business Club

If your company is assessing opportunities in Brazil, from market entry and partnerships to investment strategy, Brazil Business Club can help you read the signals behind the headline numbers. Connect with the club to engage with people and organisations already doing business in Brazil and to explore where this expanding economy may fit into your plans.