GDP in other countries grew and Brazil shrank? – Monitor R7

Soon after the IBGE (Brazilian Institute of Geography and Statistics) released the variation of the Brazilian GDP in the second quarter of this year, a message that compares the number of Brazil with the equivalent data from a list of countries began to be shared in application groups . Brazil is the only country on the list where the data is negative.

The message basically contains an image with a list of countries and beside the percentage of variation in the Gross Domestic Product (GDP) of each of these economies. There are 14 countries, including Brazil. The flag of each of them is placed on the side, as a sign.

According to the message, the first two listed are: Portugal and the United Kingdom, with a positive variation of 4.9% and 4.8%, respectively. Israel and Spain come next, with 3.6% and 2.8%, respectively. The next ones are Germany, the United States and Mexico. The first and second registered growth of 1.6%, the Mexicans changing positively by 1.5%.

China, Italy and Chile joined the 1% house, registering, respectively, 1.3%, 1.1% and 1%. France and Sweden grew by 0.9% of GDP. Japan and Brazil appear at the end of the list, with 0.3% positive and 0.1% negative.

The GDP is a survey that involves economics and statistics to try to reflect everything that is produced and consumed by a country. It is, therefore, a picture of how that country’s economy is doing. If GDP grows, it is because the country is producing and consuming more. If the index is negative, production and consumption are falling.

The data considered always more relevant is the annual change in GDP. But quarterly change is an important indicator of how a country’s economy reacts to crisis situations. Therefore, if a country registers two consecutive quarters with negative GDP variation, it is classified as a country in economic recession.

On August 30, the Organization for Economic Co-operation and Development (OECD) published an analysis of the GDP variation of the main world economies. The study compares data for the second quarter of this year with the previous quarter.

Most of the data listed in the image circulating on the internet are available in the OECD analysis. There we check the percentages of variation in the GDP of the United States, Germany, United Kingdom, Italy, Japan and France.

The percentage for Portugal matches what was released by the National Statistics Institute (INE) of the country. Israel’s information is the same as the Israeli Central Bureau of Statistics. The data for Spain is from the Instituto Nacional de Estadística and for Mexico it is from Inegi (National Institute of Statistics and Geography).

Regarding China, the information was checked against data from the Chinese National Bureau of Statistics. For Sweden, the source is Statatics Sweden and the percentage for Chile was released by the Chilean Central Bank.

The OECD document, in addition to presenting the data, evaluates the results. According to the analysis, despite the growth compared to the previous quarter registered by the listed countries, variations remain below pre-pandemic levels. The only exception is in the US economy.

Brazil is not part of the OECD, but has already applied to join the organization and is currently a non-member. Among the countries listed in the message, the Brazilian GDP had the worst variation. It loses not only to countries with highly developed economies such as Germany, the United States and France; as well as for other countries in South America (Chile) and countries that have a smaller economy than ours, such as Portugal.

According to data released today by the IBGE, Brazil’s GDP shrank 0.1% compared to the first quarter of 2021. Compared to the same period in 2020 (first year of the crisis induced by the Covid-19 pandemic), GDP registered a growth of 12.4%.

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