Brazilian economy down by 3% in May, according to FGV GDP Monitor
The Getulio Vargas Foundation’s (FGV) GDP Monitor shows a 3% contraction of the Brazilian economy in May, relative to April, with the adjusted data taken into account.
Despite the decrease, an interannual analysis revealed 1.8% growth in May and 3.5% for the quarter ending in May.
FGV’s economist attributes the downturn primarily to the conclusion of the primary soybean harvest months, and to lesser extent, slight declines in the industry and services sectors (-0.1% each).
High interest rates were cited as contributing factors to the slow economic growth.
In contrast, household consumption increased by 2.9% in the quarter ending in May.
However, a downtrend has been observed since the end of 2022, largely due to slowing service consumption growth which was at 7.0% in 2022, but dropped to 3.2% in the quarter ending in May 2023.
Investments, as indicated by Gross capital formation, fell by 0.8% for the same quarter. A significant contributor to this fall is the shrinking machinery and equipment sector.
Meanwhile, exports of goods and services surged 17.2%, primarily driven by mineral and agricultural products.
Total imports also saw an increase, rising 7.3% during the quarter, with consumer goods imports marking a substantial 28.0% growth.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief