With GDP revision for 2020, Brazil’s economy falls less than the world average

The revision of the drop in Brazilian GDP (Gross Domestic Product) in 2020 from 3.9% to 3.3%, left Brazil in a position above the world average, which is down 3.8%, in a year impacted by the Covid-19 pandemic.

With this result, Brazil rose 13 positions in a ranking prepared by the International Monetary Fund (IMF), which measures the real growth of 195 countries. This change in placement took place after the Brazilian Institute of Geography and Statistics (IBGE) revised the negative variation of the 2020 GDP, based on the System of National Accounts.

According to an analysis by Austing Rating, Brazil ranked 99th with a rate of -3.9%. With the rate update to -3.3%, Brazil rose to 86th place.

The Brazilian Gross Domestic Product (GDP) ended 2020 at R$7.6 trillion. This means that, even with the impacts of the covid-19 pandemic, the result shrank less than initially estimated.

For Alex Agostini, chief economist at Austin Rating, the previously predicted 3.9% drop was above the global average. Now, with the review for a 3.3% decline, Brazil shows a better scenario than this average. “This reinforces that the country’s economic policy was assertive, especially in the face of the pandemic, balancing the economic side and the health crisis side”, he says.

The review in general, according to Agostini, is always focused on some indicator, as this information is provided by companies, public bodies, which count the data and revise it. “Of course, over time, there is a review of history, as there is an expansion in the information base”, he explains.

Agostini shows that the IBGE itself shows this increase in the information base, as more companies enter data collection. “We must remember that 2020 was an emblematic year because of the impact of the pandemic. That year, because of the companies working from home, closed, in short, the researchers had difficulties in evaluating the real effect of the crisis”, he points out.

All sectors had an improvement in the scenario, mainly in agriculture, industry and the main one, highlighted by the IBGE, in services.

In the view of Euzebio Jorge de Souza, professor of economics at Strong Business School, it is common to have GDP revisions. “We live in a delicate situation in the country with regard to information and data, as there are several levels of complication to be able to perform an accurate calculation of GDP, considering that the indicator can be calculated from the perspective of production, income or demand. The IBGE said that this review was carried out because they had new information about the service sector”, he points out.

The IBGE pointed out that, from the perspective of services, more information emerged that indicated that the fall in the sector was not 4.3%, as initially presented, but 3.7%. As a service it corresponds to an important part of the GDP in Brazil, from the point of view of production, this ends up being substantially expressive.

The IBGE pointed out that, from the perspective of services, more information emerged that indicated that the fall in the sector was not 4.3%, as initially presented, but 3.7%. As a service it corresponds to an important part of the GDP in Brazil, from the point of view of production, this ends up being substantially expressive.

The IBGE pointed out that, from the perspective of services, more information emerged that indicated that the fall in the sector was not 4.3%, as initially presented, but 3.7%. As a service it corresponds to an important part of the GDP in Brazil, from the point of view of production, this ends up being substantially expressive.

The professor points out that these data first demonstrate that Brazil is a very relevant player in the global economy. “The country is an exporter of commodities, which places it in an important place in the production of grains, minerals, primary commodities. In other words, the growth of different countries is linked to the products that Brazil exports, especially the countries that grew the most, such as China,” he highlights.