The Brazilian Gross Domestic Product (GDP) changed 0.4% in the second quarter of 2025, compared to the previous quarter, and added up to R$3.2 trillion in current values. From the perspective of supply, the highs in the sectors of Services (0.6%) and Industry (0.5%) offset the negative change of Agriculture (-0.1%). On the supply side, Household consumption grew 0.5%, while Government consumption fell 0.6%, and Investments fell by 2.2%.

The data are part of the System of Quarterly National Accounts, released on Tuesday (2) by the IBGE.

With this result, the GDP reached the peak of the time series, started in 1996. Services and Household consumption also reached record levels. The last negative indicator of economic activity compared to the immediately previous quarter was in the second quarter of 2021 (-0.6%).

Exports of goods and services rose 0.7%, while imports fell 2.9% over the first quarter of 2025. In current values, the GDP added up to R$3.2 trillion. They were R$2.7 trillion coming from Value added at basic prices, and another R$431.7 billion of Product taxes net of subsidies.

In the services sector, Financial activities, insurance and related services (2.1%), Information and communication (1.2%), Transportation, storage and mailing (1.0%), Other services activities (0.7%) and Real estate activities (0.3%) grew. Still in Services, the activity of Trade (0%) remained stable and Administration, defense, public health and education and social security registered a negative change (-0.4%).

On the other hand, the positive performance in Industry is due to the growth of 5.4% in the Mining and quarrying industries. However, a retraction was recorded in the activities of Electricity and gas, Water, sewage and waste management activities (-2.7%), Manufacturing industries (-0.5%) and Construction (-0.2%).

According to the IBGE´s Coordinator of National Accounts, Rebeca Palis, the positive change of 0.4% compared to the previous quarter indicates a slowdown in the growth of the economy. “It was an expected effect from restrictive monetary policy (rise in the interest rate) started in September last year. The activities of Manufacturing industries and Construction, which depend on credit, are more affected in this scenario,” says Palis, adding that the negative effects on Construction and on the production of capital goods help to explain the fall in investments.

Palis explains that the Services sector is less impacted by this restrictive policy. "It was a rise disseminated throughout the sector, pressed by Financial activities, insurance and related services; Information and communication, driven by software development, and Transportation, storage and mailing, pressed by passenger transportation," says her.

From the perspective of demand, Household consumption and the Foreign sector supported the growth of the GDP, as there was a drop in Government consumption. "The total real wages continue to grow and governmental cash transfer programs remain in place, which contributes to the consumption of households," says the IBGE's National Accounts coordinator. 

For the Foreign sector, the increase in exports contributed to the positive result of the GDP. “It's been a good year for Agriculture and the Mining and quarrying industry, which are commodities that Brazil exports,” explains Palis.

Agriculture grows 10.1% and leverages the GDP in comparison with the second quarter of 2024

Regarding the second quarter of 2024, the Brazilian economic activity was up 2.2%. On the other hand, the GDP grew 2.5% and 3.2%, respectively, in the semester and in the cumulative index in four quarters.

The rise of 2.2% in the Brazilian economic activity was driven by the 10.1% growth of Agriculture. The productivity gain of some farming products explains the good performance of Agriculture in this second quarter.

“The inter-annual growth of the first quarter has already been significant. The favorable weather explains the record estimates for the record harvest of corn and soybeans, which leverage these good results from Agriculture,” says Palis.

Leveraged by Mining and quarrying industries (8.7%), Industry grew 1.1%, due to the increase in the extraction of petroleum, gas and iron ore. In contrast, the activity of Construction changed 0.2% and had its performance corroborated by the low production and marketing of typical inputs. Manufacturing industries remained stable (0.0%), with a rise in some sectors, such as basic metals, machinery and equipment, chemical and textiles, compensated by falls in the manufacture of trucks and buses, manufacture of coke and petroleum derivatives, manufacture of food and pharmaceutical industry. Electricity and gas, water, sewage and waste management activities, in turn, fell 4.0%, influenced by the worsening in the tariff flags and a drop in total energy consumption.

The Services sector grew 2.0% compared to the same period of the previous year, with positive result in all the sectors: Information and communication (6.4%), Financial activities, insurance and related services (3.8%), Other services activities (2.7%), Real estate activities (2.2%), and Transportation, storage and mailing (1.3%), Trade (0.9%), Administration, defense, public health education and social security (0.2%).

From the perspective of demand, Household consumption grew by 1.8%, influenced by the increase in the wage bill, increased credit available to families and government transfer to families. Government consumption (0.4%) also presented a positive change over the second quarter of 2024. Investment grew 4.1%, driven by the increased import of capital goods and software development.

In the foreign sector, Exports of goods and services and Imports of goods and services grew 2.0% and 4.4%, respectively. Among the exports of goods, the expansion is mainly explained by motor vehicles, oil and gas extraction, basic metals and electrical machinery and apparatus. The highlights in the import agenda were chemicals, machinery and equipment, pharmaceuticals and electrical machinery and apparatus. 

About the System of National Accounts

The System of Quarterly National Accounts (SCNT) presents the current values and the volume indexes, on a quarterly basis, for the GDP at market prices, taxes on products, value added at basic prices, personal consumption, government consumption, gross fixed capital formation, stock changes, and exports and imports of goods and services. The SCNT began in 1988 and it was redesigned in 1998, when its results were integrated into the System of National Accounts, which has an annual periodicity. The next release, related to the third quarter of 2025, will be on December 4.