Brazil’s services sector rises: 4.7% growth in H1 2023 with stable development in all sectors

The Brazilian service sector experienced a 4.7% growth in the first half of 2023, as per recent findings by the Brazilian Institute of Geography and Statistics (IBGE).

This boost was primarily due to a 0.2% increase from May to June, driven by a partial revival in professional, administrative, and complementary services.

By June, the volume of services provided nationally was 12.1% higher than its level in February 2020, before the COVID-19 pandemic took its toll.

However, it remains 1.5% below the record high achieved in December of the prior year.

Service volume growth was observed in 16 federal units, with significant positive contributions from São Paulo, Paraná, the Federal District, and Minas Gerais.

In contrast, Rio de Janeiro saw a decrease.

Compared to June of the previous year, there was a 4.1% increase, marking this metric’s 28th consecutive positive rate.

Entities influenced June’s positive shift in legal activities, loyalty program management, and engineering.

These service providers helped offset the decline seen in April and May.

Family services witnessed a 4.1% surge over three months, 1.9% of which was in June alone.

This spike was linked to increased revenues in the restaurant industry and theatrical and musical performances.

Three out of five sectors covered in the study grew in June, with information and communication services standing out.

Transportation and some other services faced declines, with transport services dropping by 0.3% after a 2.2% rise in May.

Sectors like port management, air passenger transport, and inland cargo navigation led to this decline.

Lastly, the tourism activity index slipped by 0.4% from May to June but accumulated a 4.3% increase in the first half of 2023.

The volume of tourism services remains 4.9% above pre-pandemic levels but is 2.6% lower than its peak in February 2014.

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