GDP increases by 0.5%

The Brazilian Gross Domestic Product (GDP) increased by just 0.5% in the second quarter of 2006, largely frustrating the economic, which expected better numbers. Many experts had predicted the GDP could have increased up to 1% in comparison to the first quarter. With the result, the cumulated increase in the GDP for the 12 months ending in June was 1.7%, making the government's projection of a 4% increase for the year more unlikely. According to the data released by the Brazilian Institute for Geography and Statistics (IBGE), lower numbers in industry production and investments contributed for a lower than expected result.