07/16/2024 – 10:39
Brazil’s Gross Domestic Product (GDP) rose 0.3% in May compared to April, according to the GDP Monitor, compiled by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV). Compared to May 2023, economic activity expanded by 1.3%.
“Economic growth in May, compared to April, was strongly influenced by the performance of household consumption, which recorded the highest increase of the year in this month. Investments also grew during this period. These facts reveal a heated internal demand”, assessed the coordinator of the research, Juliana Trece.
According to her, from a production perspective, the scenario is a little different. Among the three major economic activities, only agriculture and livestock farming saw growth, while industry and the services sector remained stable.
“This scenario shows that, although domestic demand is strong, domestic production capacity is not demonstrating the same strength,” he said.
Household consumption grew 4.6% in the quarter ending in May and Gross Fixed Capital Formation (GFCF) rose 4.5%, in the same comparison.
“Consumption continues to grow in all categories, but with a greater influence from the consumption of services and non-durable products. Despite this, it is worth noting that the upward trend observed since the beginning of the year has been interrupted, which may indicate a loss of momentum in consumption. Only the consumption of non-durable products grew between the three-month period ending in April and the three-month period ending in May,” reported FGV.
The investment rate in May was 18%, in the current value series, slightly above the average investment rate since 2000.
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