The Brazilian Institute of Geography and Statistics (IBGE) revised the drop in Gross Domestic Product (GDP), the sum of all goods and services produced in the country, to 3.3% in 2020. Previously, it was reported that the Brazilian economy had retreated 3.9% in the first year of the pandemic. According to the IBGE, in 2019, the Brazilian GDP had grown by 1.2%.
The review was released today (4) by the 2020 System of National Accounts Brazil survey, which provides greater detail on the economy than that presented by the Quarterly National Accounts, which provides preliminary data.
The revision was made, mainly, by the incorporation of new information about the services, which went from a 4.3% drop in preliminary data to a 3.7% decrease in the consolidated data released. today.
The main revision occurred in other service activities, which changed from -12.3% in the data to -9.3%.
The fall of Industry was revised from -3.4% to -3%, while the growth of agriculture was revised from 3.8% to 4.2%.
Demand
From a demand perspective, household consumption dropped 4.5% while government consumption dropped 3.7%. Gross fixed capital formation, that is, investments, fell by 1.7% in 2020.
Among investments, there were decreases in machinery and equipment (-4.3%) and intellectual property products also had a retraction (-2.3%). On the other hand, construction (0.6%) and other fixed assets (1.9%) grew.
Other highlights of the survey were the drop in the economy’s borrowing requirements by 66.6% compared to 2019 and the 29.4% growth in social benefits received by families also compared to 2019.
