BRASILIA, June 1 (Reuters) - Brazil's economy rebounded more than expected in the first quarter, powered by a booming farm sector and paving the way for a rosier annual outlook despite a drag from high interest rates.
Gross domestic product (GDP) expanded by 1.9% in the three months through March after a revised 0.1% drop in the prior quarter, data from government statistics agency IBGE showed on Thursday.
The Brazilian real strengthened 0.5% against the U.S. dollar and the benchmark Bovespa stock index (.BVSP) rose 0.6%.
Goldman Sachs adjusted its 2023 GDP growth forecast to 2.6% from 1.75% after the first-quarter data, citing the additional help of net exports and inventory accumulation.
XP economists indicated an upward revision of their current 1.4% growth outlook, forecasting market expectations to keep rising to the range of 2.0% to 2.5%.
Persons:
Simone Tebet, Goldman Sachs, Luiz Inacio Lula da Silva, Lucas Toro, Toro Investimentos, Roberto Campos Neto, Marcela Ayres, Bernardo Caram, Brad Haynes, Steven Grattan, Sriraj
Organizations:
Gross, IBGE, U.S ., Finance Ministry, Thomson
Locations:
BRASILIA, Brazilian