Brazil´s Economy Grew Faster Than Expected in Second Quarter

Brazil´s economy expanded more than expected in the second quarter as a surge in exports of products such as iron, sugar and trucks more than offset a slump in domestic demand. Stocks, bonds and the currency gained.

Gross domestic product grew 3.9 percent from a year earlier, faster than the 2.8 percent growth in the first quarter and above the 3.4 percent median forecast in a Bloomberg survey of 24 economists, a government report showed.

Brazilian exports, buoyed by global economic growth, jumped to a record $29 billion in the second quarter, prompting companies such as TPV Technology Ltd. to invest in increasing output capacity. Investment rose 4 percent in the quarter, up from a 2.3 percent increase in the first quarter.

Brazil´s second-quarter growth rate, while higher than the first quarter, is below 2004 growth of 4.9 percent. Economists predict growth of 3 percent this year, according to the median estimate in a central bank survey of about 100 financial institutions released on Aug. 29.