Brazil’s GDP advances 1.2% in the 2nd quarter | Economy

Brazil’s GDP advances 1.2% in the 2nd quarter | Economy
Brazil’s GDP advances 1.2% in the 2nd quarter | Economy

Brazil’s Gross Domestic Product (GDP) grew 1.2% in the 2nd quarter, compared to the immediately previous three months, as announced this Thursday (1st) by the Brazilian Institute of Geography and Statistics (IBGE).

Compared to the same quarter of 2021, the increase was 3.2%. The Brazilian GDP ends the first half of 2022 with a high of 2.5%.

In current values, it reached R$ 2.4 trillion, against R$ 2.249 trillion in the first quarter.

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This is the fourth consecutive quarter of growth in the country’s economic activity. In this release, the IBGE also revised results from previous quarters, which raised the first quarter of the year to growth from 1% to 1.1%.

Still within the revisions, the fall in the 2nd quarter of 2021 went from -0.2% to -0.3%. In the 4th quarter of 2021, growth went from 0.7% to 0.8%. Considering the new results, GDP grew the most since the 4th quarter of 2020, when there was a rise of 3.2%.

The GDP was also in line with the forecast of the Fundação Getulio Vargas (FGV) indicator, which predicted a 1.1% increase in GDP for the period between April and June. The preview of the Central Bank pointed to a high of 0.57%.

See the history in the graph:

1 of 1 Quarterly GDP variation — Photo: Arte g1

Quarterly change in GDP — Photo: Arte g1

The surprise of this measurement of economic activity was the performance of the industry, which accelerated 2.2% in the second quarter. Compared to the same period last year, the increase was 1.9%.

But the economic driver was, once again, the service sector, which represents about 70% of the country’s GDP. Services rose 1.3% in the quarter and 4.5% in contrast to the same period in 2021.

Household consumption grew 2.6% compared to the first quarter of the year, and rose 5.3% compared to the same period in 2021.

The activities of this segment suffered the worst of the impact of the coronavirus pandemic on the economy, because they are highly dependent on human contact and movement of people.

Main highlights of the 2nd quarter GDP:

  • Services: 1.3%;
  • Industry: 2.2%;
  • Agriculture: 0.5%;
  • Household consumption: 2.6%;
  • Government consumption: -0.9%;
  • Investments: 4.8%;
  • Exports: -2.5%;
  • Import: 7.6%.

The good result in the 2nd quarter and positive leading indicators in recent months have led to an upward revision of projections for economic growth in 2022. Analysts point to a GDP advance of 2.1% in the year, while the government estimates a up 2%.

On the other hand, part of the forecasts for 2023 have been revised downwards, with some houses even pointing to the risk of retraction, amid persistent inflation, rising interest rates, fears of global recession and uncertainties related to the electoral race in Brazil.

According to the Central Bank’s Focus bulletin, the market estimate is for a rise of just 0.37% in next year’s GDP.

In 2021, Brazil’s GDP grew by 4.6%, after falling 3.9% in 2020.

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2nd QUARTER 2022 GDP

The article is in Portuguese

Brazil

Tags: Brazils GDP advances #2nd quarter Economy

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