RIO DE JANEIRO, BRAZIL – Brazilian industrial production grew by 2.6 percent in September compared to August, which allowed the sector to offset losses accumulated in the worst months of the Covid-19 pandemic, the Brazilian Institute of Geography and Statistics (IBGE) reported November 4th.
The industry recovered from a 27.1 percent drop that occurred between March and April, when it reached its lowest level in history due to the distancing measures implemented to contain the spread of the novel coronavirus.
“With the September results, combined with the progress of the past four months, industrial production exceeded the pre-pandemic February level by 0.2 percent,” explained André Macedo, research manager at the IBGE.
“After the months of March and April and with the relaxation of social distancing measures, the industrial sector has been recovering that level every month,” he added.
The indicator has been growing for five months after the hikes in May (8.7%), June (9.6%), July (8.6%) and August (3.6%), the sum of which exceeds the March and April losses.
According to the IBGE, 22 of the 26 sectors analyzed have registered an increase in industrial activity in September, with emphasis on vehicles, trailers and bodywork, up by 14,1 percent.
“It is worth noting that this activity has accumulated a 1,042 percent growth in production over five consecutive months, but is still 12.8 percent below the February level,” explained Macedo.
As of June, the majority of the 27 states began to reopen their economies, despite the rising infection and death curves, which resulted in an improvement in projections for the country’s Gross Domestic Product.
In the hardest months of the pandemic, international organizations had projected the Brazilian economy to collapse between eight and nine percent this year, but the latest government and financial market projections have reduced this drop to a range between four and five percent.