Brazil economy slows to 0.5% growth in second quarter

Brazil's economy grew 0.5 percent in the second quarter from the previous quarter, slowing from 1.1 percent growth in the first quarter, the Brazilian Geography and Statistics Institute said Tuesday.

The institute said household consumption fell 0.4 percent in the April-June period and exports dropped 0.8 percent. Growth was supported by a 2.8 percent rise in farm production and a 3.4 percent increase in extraction industries such as mining and oil production.

The figures came with presidential elections due in just over a month. President Luiz Inacio Lula da Silva's government has worked to stimulate domestic consumption, while Brazil's central bank has kept its benchmark interest rate high as it tries to fight inflation, limiting credit to consumers and companies.