Brazil's economy ended 2013 on a upbeat note thanks to strong consumer spending and investment, providing a much-needed boost to President Dilma Rousseff as she tries to rebuild her credibility with business leaders and win re-election in October.
Gross domestic product expanded 0.7 percent in the fourth quarter compared to the third quarter, government statistics institute IBGE said on Thursday. That was more than twice the amount expected by economists, and it pushed the economy to 2.3 percent growth for calendar year 2013.
Such growth is a far cry from the dynamic 4 to 5 percent annual levels often seen in the last decade, when Chinese demand for commodities helped make Brazil a star among emerging markets. Inadequate infrastructure, high consumer debt and sagging business confidence have brought Latin America's biggest economy back to earth since then, prompting fears of a long period of stagnant growth ahead, possibly for years to come.