The Brazilian economy continues to recover, after resuming in 2021, even with the impacts of the Eastern European conflict and the lingering effects of the covid-19 pandemic. The evaluation is from the Economic Policy Secretariat (SPE) of the Ministry of Economy, which evaluated the Gross Domestic Product (GDP) results, released today by the Brazilian Institute of Geography and Statistics (IBGE).
The GDP, the sum of all goods and services produced in the country, grew 1% in the first quarter of this year, in comparison with the previous quarter. In comparison with the first quarter of 2021, the country’s economy grew by 1.7%.
“After the vigorous resumption of activity in 2021, when the Brazilian economy recorded a 4.6% increase in GDP and confirmed the economic recovery in a “V”, the beginning of 2022 maintained the robust growth of activity despite the environment of uncertainty generated by the reflections of the war between Russia and Ukraine”, says the secretary, in the Informative Note – Consolidation of the economic recovery, published today (2).
The SPE also highlights that Brazilian economic activity “proved positive in the first quarter of 2022 in several areas, especially in industry and services, confirming the reheating of activity and improvement in the business environment”. “This movement brought positive reflexes in the expectations of entrepreneurs and consumers for the following quarters”, he added.
The secretariat also says that the long-term growth of the Brazilian economy depends “fundamentally on fiscal consolidation” (reduction of the debt-to-GDP ratio) and on “an important pro-market reform agenda: economic opening, privatization and concessions, improvement of the legal requirements and increased legal certainty, improved business environment and reduced bureaucracy, corrected misallocation of resources and facilitated the reallocation of capital and labor in the economy”.
