Brazil Q3 GDP qoq likely to rise

Brazil GDP for Q3 quarter on quarter basis is expected to be -1.2 by market consensus, rising from that of previous quarter's -1.9 reading. GDP year on year is expected by consensus to be -4.2, while previous GDP yoy was at -2.6.

There is 5% contraction shown in the supply side economy's activation index in Q3. While the domestic demand pushed down by sharp contraction in investment and consumption, should be a drag to the economy, net exports likely contributed to the growth.

"Based on the releases so far, we estimate the demand-side economy to have contracted -1.6% qoq (-6.5% annualised or -4.1% yoy). Accordingly, we have also revised down our 2016 growth forecast substantially to -1.4% from -0.7%. The economy is also unlikely to grow in 2017 (although we expect some growth in H2 17)", says Societe Generale in a research note.