The FGV GDP Monitor points to a 0.6% growth in economic activity in November compared to October. The information was released this Friday (17), in Rio de Janeiro, by the Brazilian Institute of Economics (Ibre), of the Getulio Vargas Foundation (FGV). In monetary terms, it is estimated that the GDP accumulated up to October – in current values - was R$10.708 trillion.
Family consumption grew 5.7% in the moving quarter ended in November. “The performance of household consumption continues to show strong growth, although, for the first time, since May 2024, the growth of the quarterly mobile rate has slowed down”, explains FGV.
The 10% growth in Gross Fixed Capital Formation (GFCF) in the moving quarter ended in November is explained by the performance of the machinery and equipment segment, however, all components contributed positively to the GFCF result.
Despite this, there is a reduction in growth compared to the rates of previous months. The machinery and equipment sector maintained a similar contribution, however, the GFCF construction sectors reduced their positive contributions.
Exports grow 4.4%
After a year of clear slowdown, exports grew 4.4% in the moving quarter that ended in November. It is the highest rate since the moving quarter closed in April 2024.
Consumer goods and intermediate goods were the main segments contributing to maintaining the variation in exports in positive territory, which was not greater due to the negative performance of exports of agricultural products, which mitigated this expansion.
The significant growth in imports of 18.8% in the mobile quarter ended in November results from the expansion in all its segments. It is noteworthy that only the import of intermediate goods accounted for half of the increase in imports.
Despite this, there is a smaller mobile quarterly expansion observed in November than that recorded in October.
Performance of industry and agriculture
According to Juliana Trece, coordinator of the research, the growth of the economy in November, compared to October, is the result of the good performance of agriculture and industry.
Although the manufacturing industry has stagnated, the extractive industry, construction, and electricity and related services have grown robustly. In the services sector, stagnation was observed for the second consecutive month, the same pattern observed in household consumption.
“The main positive highlights from a demand perspective are investments (gross fixed capital formation) and exports. The growth in investments in November is, in part, a recovery from the strong fall that occurred in October. Exports grew strongly after presenting negative or very low growth rates in 2024. These results show that the strong and widespread growth of the economy persists, although some signs of possible exhaustion in some segments, such as the services sector and household consumption, may indicate some difficulty in maintaining the strong growth rate that was being observed in these components of GDP”, concludes Juliana.
*Article amended at 12:08 pm to change title
