The Brazilian Gross Domestic Product (GDP) fell by 0.8% in May compared to April, after three consecutive increases, according to the GDP Monitor, calculated by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV).
In comparison with May 2021, economic activity expanded by 4.4% in May 2022.
“After three consecutive months of growth, the economy shrank 0.8% in May. The industry, which had grown in the previous months, after a bad start to the year, returned to present a decline. Another important negative highlight was the consumption of families”, said the research coordinator, Juliana Trece, in a note.
She explains that, in the current conjuncture, high inflation and interest rates reduce the purchasing power of families. This is reflected in the consumption of less essential products, such as semi-durables and durables, which lost strength and retracted in May, she informs.
Household consumption fell by 2.1% in May compared to April. In the interannual comparison, it grew 4.7% in May.
GFCF grew by 1.6% in May compared to April. In the interannual comparison, it retracted 2% in the moving quarter ended in May.
Source: CNN Brasil
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