The Gross Domestic Product (GDP), which is the sum of all goods and services produced in the country, fell by 1.5% in the first quarter of this year, compared to the last quarter of 2019.
The data was released today (29), in Rio de Janeiro, by the Brazilian Institute of Geography and Statistics (IBGE).
Compared to the first quarter of 2019, GDP fell by 0.3%. In 12 months, GDP accumulated an increase of 0.9%.
The drop in the first quarter in relation to the previous quarter was the first decline in GDP in this type of comparison since the last quarter of 2018.
According to IBGE, GDP in the first quarter was affected by the new coronavirus pandemic and social isolation measures, adopted in various parts of the country from mid-March.
The retraction was mainly driven by services, which fell 1.6% from the last quarter of 2019 to the first quarter of this year. But there was also a drop of 1.4% in the industry. Agriculture was the only productive sector that grew (0.6%).
From a demand perspective, household consumption fell by 2%.
“The same thing happened in Brazil that happened in other countries affected by the pandemic, which was the decline in services aimed at families due to the closure of establishments. Durable goods, vehicles, clothing, beauty salons, gyms, accommodation and food suffered greatly from social isolation”, said IBGE National Accounts Coordinator, Rebeca Palis.
Exports also fell (-0.9%). At the same time, government consumption (0.2%) and gross fixed capital formation, that is, investments (3.1%), in addition to imports (2.8%) grew.
Source: DATA
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