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Decline in activity in the 4th quarter affected all regions of the country, says BC

The contraction of the Brazilian economy in the fourth quarter of 2022 was disseminated across all regions of the country compared to the period from July to September, according to the Regional Bulletin released this Thursday (9) by the Central Bank, “corroborating the ongoing slowdown in activity economically”, assessed the municipality. Last year, however, there was widespread growth.

The Central Bank’s Economic Activity Index (IBC-Br), which measures the pace of the economy throughout Brazil, fell 1.46% between October and December, at the margin. According to the Brazilian Institute of Geography and Statistics, the Gross Domestic Product (GDP) dropped 0.2% in the fourth quarter.

Data from the Regional Bulletin show that the sharpest drop was seen in the Midwest, 3.9% compared to the third quarter.

The negative performance was followed by the North (-2.9%), South (-1.6%), Northeast (-1.2%) and Southeast (-0.4%) regions.


In 2022, growth was seen in all regions of the country, with emphasis on the Midwest, where there was an increase of 5.9% compared to 2021.

The economic advance was also strong in the Northeast (3.9%) and Southeast (3.5%). In the North, activity growth was 2.3% last year, while in the South there was an increase of 1.2%. The IBC-Br rose 2.9% in 2022, the same percentage of GDP.

According to BC, the indicator for the year shows that economic activity grew in all regions, reflecting the continued recovery in the volume of services, especially those provided to families, considering the Regional Economic Activity Index (IBCR).

“The Midwest led the increase in economic activity, reflecting the growth in agricultural production, the food industry and the strong expansion of construction for the second consecutive year, in addition to progress in all segments of services.”

The BC also pointed out that agriculture was also a highlight in the Northeast. In the South, however, agricultural production was responsible for the weak result, as well as the modest data from the manufacturing industry, trade and transport services.

In the Southeast and North, growth was generalized with the exception, respectively, of commerce and extractive industry, according to the BC.

“Economic activity grew in 2022, with some heterogeneity in the performance of the sectors, despite the slowdown throughout the year, particularly in the fourth quarter”, evaluated the BC in the document.

Among the sectors, the municipality highlighted that industrial production grew in the first half, but retreated in the last two quarters, ending the year with a drop compared to 2021.

Likewise, retail trade in the expanded concept only had positive results in two quarters, the first and fourth.

The services sector, on the other hand, maintained an expansion trajectory throughout the year, “ending 2022 with significant growth”, with the impact of the return of mobility after the end of the restrictions imposed during the pandemic.

“However, even the tertiary sector slowed down in the fourth quarter. The labor market continued on a favorable trajectory, with maintenance of the generation of formal jobs, although data for the fourth quarter indicate a loss of dynamism at the margin.”

Source: CNN Brasil

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