To the surprise of many, recent research indicates that the Brazilian economy grew 0.7% in January compared to December, according to the G1 news portal.
According to the weekly economic editorial on the G1 portal, a study on the Brazilian economy revealed, through the GDP Monitor, calculated by the Getulio Vargas Foundation (FGV) and released this Monday (30), an increase in the Brazilian economy.
What's new? In the moving quarter from November to January, growth was 0.2% against that ended in October.
Brazilian economy – important considerations
The G1 portal reveals that in the year-on-year comparison, the economy grew by 1.2% both in January and in the moving quarter ending in January.
In other words, both in the seasonally adjusted and year-on-year comparison, there was growth in the three major economic activities (agriculture, industry and services), says FGV.
On the other hand, the editorial clarifies: from the demand perspective, the only component to show a decline in both comparison bases was exports. See below the words of the GDP coordinator Claudio Considera said: in official note:
“The economy starts 2020 with a positive result in January (1.1% in the accumulated rate over 12 months) compared to December, highlighting the continuation of the slow and mediocre recovery that has been taking place since 2017, when the expansionary period began after the recession that began in 2014.”
He concluded by saying that howeverHowever, even the weak economic growth of this moving quarter ending in January, which was driven by both consumption and investment, will not be sustained throughout the year in the face of the economic and social challenges that will be felt from March onwards, with the arrival of the coronavirus pandemic.
Another important piece of information revealed in this research was that the investment rate in January was 15.2%, in the current value series.
Therefore, in monetary terms, GDP in current values was approximately R$615.121 billion in January.
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