GDP shows good performance in services, employment and investments, says Economy

The growth of Gross Domestic Product (GDP) in the second quarter reflects positive data in services, employment rates and investments, said this Thursday (1st) the Ministry of Economy.

An informative note produced by the ministry states that, considering only the statistical loading of the first half of this year, the growth in 2022 would be 2.4% even if the GDP was stagnant in the final six months of the year.

“The indicators show the good performance of services, the recovery of employment and the rate of investments at high levels. Services are at the best level since 2015, investments have recovered to the level of 2014 and the unemployment rate is the lowest since 2015”, he said.

Brazil’s GDP grew by 1.2% in the second quarter of this year compared to the first, above expectations and at a similar pace to that seen in early 2022.

In the words of the ministry, the Brazilian economy “is heading to overcome the impact of two crises: the effects of the Covid-19 pandemic and the consequences of the 2014 to 2016 recession”.

The analysis of the portfolio shows that the results of the activity have been positively surprising, using as a justification the upward revisions made by market agents.

“The most recent results lead experts to systematically revise their forecasts for 2022, expanding the expected growth, whose median went from 0.3% at the beginning of the year to more than 2.0% at the end of August,” he said.

The most recent Central Bank Focus bulletin, which collects forecasts from market analysts, points to a 2.10% increase in GDP this year. In January, the estimate was at 0.28%.

In addition to the continued recovery of the services sector, the continuous drop in the unemployment rate and the expansion of private investment, the note mentions the continued growth of the credit and capital markets as positive factors for the activity.

On the other hand, the portfolio presents warning factors that inspire attention, citing uncertainties related to the conflict in Ukraine, rising inflation in the international market, need to adjust financial conditions and the consequent slowdown in global growth.