* GDP expands just 0.6 pct in Q3 vs Q2
* Analysts had expected 1.2 pct expansion
By Brian Winter
SAO PAULO, Nov 30 Brazil's economy grew just 0.6
percent in the third quarter from the second quarter, only half
the rate expected by financial markets, as a flood of government
stimulus failed to stir the Latin American giant out of its long
Investment dropped for a fifth straight quarter, down 2.0
percent from the previous quarter, the government statistics
agency said on Friday. Consumption rose 0.9 percent.
Gross domestic product had been expected to expand 1.2
percent in the third quarter over the second quarter, according
to the median forecast of 42 analysts polled by Reuters. The
economy's actual performance was below any of the analysts'
Since posting 7.5 percent growth in 2010, Brazil's economy
has struggled with high costs and severe infrastructure and
labor bottlenecks that have restrained investment and kept
overall activity weak. President Dilma Rousseff has tried to
revive the economy with numerous tax cuts and other stimulus,
but companies have remained conservative in their bets.
The economy was expected by analysts to grow just 1.5
percent this year, but those forecasts are now likely to be
revised down after Friday's data.
Brazil grew 0.9 percent in the third quarter when compared
to the year-earlier period, IBGE said. That was also far below
expectations for growth of 1.9 percent, according to the Reuters
The IBGE also revised down second quarter growth to 0.2
percent compared to the first quarter from a previously reported