2nd quarter GDP should frustrate excitement with recovery – News

After jump 1.2% in the first quarter in comparison with the last three months of last year and recovering the pre-pandemic level, the GDP (Brazil Domestic Product) for the second quarter will be released this Wednesday morning (1st).

The expected result, however, should represent stability in the production of goods and services and frustrate expectations of recovery with more significant growth.

“We are hardly going to grow more than 0.2% compared to the first quarter. The joy has decreased a lot”, says economist Roberto Dumas, from Insper. “The scenario has become much more challenging and it is possible to reduce the animation.”

Although low, the result should represent the fourth consecutive positive quarterly performance of the Brazilian economy, after the setbacks in the first (-2.2%) and second (-9.2%) quarters of 2020, periods most affected by new coronavirus pandemic.

Due to the accumulated decline of 4.1% in the economy over the past year, Dumas points out that the rise in GDP in 2021 will be negligible. According to the latest financial market expectations, the Brazilian economy should grow 5.22% this year.

“One or three months ago we anticipated that GDP would grow 5.4% this year, which is not very significant, considering that we started from a drop of 4.1% last year and a huge part means statistical inheritance” , evaluates the economist.