During the second quarter of 2021, the year-on-year growth rate of Brazil’s GDP stood at 12.36%, accelerating the economic recovery that began in the third quarter of 2020. The year-on-year growth rate of industrial production increased significantly compared to the previous quarter to a growth rate of 22.63%. As for the labor market, the unemployment rate in the second quarter of 2021 was 14.47%, a slight increase compared to the first quarter of 2021. The Brazilian real appreciated against the dollar, placing the exchange rate at 5.30 R$/USD. Finally, inflation stood at 7.72%, after an increase compared to the previous quarter.


Macroeconomic outlook report: Brazil 2Q21

Watch video

Macroeconomic overview

  • The year-on-year growth rate of Brazilian GDP stood at 12.36% after an increase of 10.02 p.p. compared to the previous quarter. This recovery in GDP was mainly due to the advances in vaccination and the recovery of confidence and mobility of the population.
  • Industrial production increased its year-on-year growth rate by 17.52 p.p. compared to the previous quarter, registering a growth of 22.63%.
  • As for the labour market, the unemployment rate increased slightly by 0.03 p.p. compared to the previous quarter, standing at 14.47% in 2Q21.
  • The exchange rate decreased by 0.17 reals per dollar compared to the previous quarter, registering an average exchange rate of 5.30 R$/USD in 2Q21.
  • The Brazilian inflation rate increased in 2Q21 by 2.44 p.p. compared to 1Q21, standing at 7.72%, far from the BCB's target range for 2021 of 3.75%.

For more information access the executive document in pdf (available in Spanish and Portuguese).