The Brazilian economy shrank 0.8% in May against April, considering the seasonally adjusted series – a kind of compensation to compare different months of the year.
The FGV-GDP Monitor calculated the percentage. The Getulio Vargas Foundation (FGV) released the report this Monday, July 18.
The drop in economic activity was registered after three consecutive months of growth. According to the research coordinator, Juliana Trece, the industry contributed to the worsening result. Household consumption also fell.
According to the analyst, inflation and interest rates at high levels help weaken economic recovery because they reduce the population’s purchasing power.
“This is reflected in the consumption of less essential products, such as semi-durables and durable goods, which lost strength and retracted in May,” said Juliana.
Household consumption dropped 2.1% in May against April. The GFCF (gross fixed capital formation) rose 1.6% in May.
Compared to May 2021, the Brazilian economy grew 4.4%. Household consumption advanced 4.7% in the same comparison interval.
With information from Poder360
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