BRASÍLIA: Brazil’s economy, the largest in Latin America, continued to pick up pace in the second quarter, beating market expectations with 1.4 percent growth, according to data released Tuesday.

Driven by growth in industry and services, Brazil’s economic rebound comes after growth hovered at around zero in the last two quarters of 2023.

GDP was up 3.3 percent compared to the second quarter of 2023.

The Brazilian Institute of Geography and Statistics (IBGE) also revised first-quarter growth to 1.0 percent, up from 0.8 percent.

An average of estimates from more than 70 consulting firms and financial institutions had predicted growth of 0.9 percent in the second quarter, according to the Valor Economico newspaper.

The data is good news for President Luiz Inacio Lula da Silva, who has forecast a faster-than-expected economic recovery.

Rebeca Palis, an analyst at IBGE, highlighted an “end of the prominence of agriculture” as a driver of economic growth, with the sector falling 2.3 percent in the second quarter.

“Industry stood out this quarter, especially electricity and gas, water, sanitation, waste management and construction,” she said.

A rise in household and government spending also played a role, driven by improvements in the labor market, a reduction in interest rates and the availability of credit, she added.

The unemployment rate in Brazil fell to 6.8 percent in the moving quarter from May to July, a reduction of 1.1 percentage points compared to the same period in 2023.

Inflation rose 0.38 percent in July, reaching 4.50 percent in 12 months, according to IBGE data.

The government predicts growth of 2.5 percent this year, slightly above market expectations of 2.46 percent.