RIO DE JANEIRO, BRAZIL – Sales in trade increased by 17.2 percent in Q3 this year over the preceding three months, a record increase since official records began in 2000, sources said yesterday.
The result shows a robust rebound in the sector after declines in the first (-1.9 percent) and second (-8.5 percent) quarters this year, affected by the novel coronavirus pandemic, according to the Brazilian Institute of Geography and Statistics (IBGE).
Sales also increased by 6.3 percent between July and September, compared to the same period in 2019, in what is the highest growth since 2014.
In September alone, sales in the sector grew by 0.6 percent compared to August, the fifth consecutive monthly increase.
However, the increase is less intense than that recorded in August (3.1 percent), July (4.7 percent), June (8.7 percent) and May (12.2 percent), when compared to the immediately preceding month, respectively.
“The deceleration is normal and represents an accommodation because the drops in March and April were very significant, which led to the following months of recovery experience intense increases,” explained IBGE analyst Cristiano Santos in a statement.
The sharp declines in March (-2.5 percent) and April (-16.6 percent) reflected the restrictions adopted by governors and mayors in the country to contain the Covid-19 pandemic, which began to be relaxed as of late May although the infection and death curve was still rising.
Retail sales grew by 7.3 percent in September compared to the same month in 2019, the fourth consecutive positive rate in the annual comparison.
The sector recorded stability (0.0 percent) between January and September 2020 and a slight increase of 0.6 percent over the last twelve months.
Brazil is one of the most affected countries by the pandemic and one of the hardest hit in the world, accounting for the second-highest number of deaths (over 5.7 million cases and 162,829 fatalities), after the United States.
The pandemic interrupted the economic rebound Brazil had been experiencing after the 2015 and 2016 recession, when the country’s gross domestic product (GDP) fell by almost seven percentage points.
According to government projections and analysts consulted by the Central Bank, the Brazilian economy is expected to contract between four and five percent this year, although a strong rebound of over three percent is expected for 2021.