Brazil economy up 9.7% in quarter ending in May

Brazil’s gross domestic product (GDP) grew 9.7 percent in the quarter ending in May this year, compared to the same period last year. The information comes from Monitor do PIB (“GDP Monitor”), released today (Jul. 16) in Rio de Janeiro by the Getulio Vargas Foundation (FGV).

Compared to the quarter ending in February this year, however, the Brazilian economy saw losses adding up to 0.9 percent. Considering May alone, the GDP was up 1.8 percent against April this year and 13.4 percent compared to May 2020.

“In May, compared to May 2020, the economy kept the intense growing pace observed since April due to the low comparison base in 2020. This comes as reflex of the growth in all economic activities and components making up the demand. Nonetheless, the economy is still 0.7 percent below the level it had in February 2020, before the beginning of the pandemic in the country. These results show there is still a long way until the more robust resumption of the economy,” said FGV Researcher Claudio Considera.

The 9.7 percent increase in the quarter ending in May this year, compared to the same period in 2020, was pulled by growths of 29.3 percent in the gross formation of fixed capital (investment) and 10.1 percent in families’ consumption.