The GDP-FGV Monitor shows growth of 0.1% in economic activity in October, compared to September, considering seasonally adjusted data. In the interannual comparison, economic growth in October was 2.8%. In the quarter-on-year analysis, the economy grew 3.3% in the moving quarter ended in October.
The data was released today (16) by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV).
According to the research coordinator, Juliana Trece, the growth of the Gross Domestic Product (GDP) in October is mainly due to the good performance of the service sector and consumption.
“As has been the case throughout 2022, these components continue to contribute positively to the performance of the economy. It should be noted that after two consecutive declines in economic activity, the 0.1% growth is considered modest, but it does not fail to show that the economy is still showing signs of growth, despite the greater influence of the monetary tightening caused by high interest rates”, said.
In monetary terms, it is estimated that the accumulated GDP until October 2022, in current values, was R$ 8.158 trillion.
household consumption
Household consumption grew by 5.7% in the moving quarter ended in October. According to the survey, the positive contribution of the consumption of non-durable products continues to increase since the second quarter. The main driver of consumption growth continues to be services. After having fallen for more than a year (since the third quarter of 2021), consumption of durable goods grew in the moving quarter ending in October.
Gross fixed capital formation (GFCF)
Gross fixed capital formation (GFCF), which are investments, grew 6.4% in the rolling quarter ended in October, with a relevant contribution from the machinery and equipment segment. Despite starting the year contributing negatively to GFCF, in the moving quarter ending in October, the contribution of machines and equipment represented around 70% of the component’s growth.
According to the study, this growth is mainly explained by the performance of imported machinery and equipment, with emphasis on the segment of trucks, buses, trailers and bodies.
Exportation and importation
Exports of goods and services grew 11.4% in the moving quarter ended in October. With the exception of exports of mineral extraction products, the other segments contributed positively to this growth.
Imports of goods and services increased by 11.9% in the same period. The major contributions to this growth were imports of services (5.6%), intermediate goods (4.7%) and capital goods (2.9%). “The other segments of imports retracted, however in small magnitude, which explains the little contribution in the reduction of the growth of imports”, says the Ibre/FGV.
