GDP Monitor indicates positive performance on both supply and demand sides; compared to the same month in 2020, activities grew by 2.2%
The Brazilian economy grew 1.8% in November compared to the previous month, according to data from the Gross Domestic Product (GDP) Monitor released this Wednesday, 19th, by the Getulio Vargas Foundation (FGV). In October, the indicator pointed to a decrease of 0.7%. As a result, the economy reversed the downward trajectory and stagnation observed since April. Despite the increase, economic activities registered a retraction of 0.3% in the quarter ended in November compared to the one ended in August. Compared to the same period in 2020, the domestic economy advanced 2.2% in the month and 1.3% in the moving quarter ended in November.
According to the data, the month registered positive rates on the demand side, as in household consumption, and on the supply side, with emphasis on the manufacturing industry. “The rate accumulated in twelve months, which had been negative from April 2020 to April this year, continues to grow at increasing rates and in November it was positive at 4.4%, indicating a GDP growth rate for this year around this one.”, says the coordinator of the PIB-FGV Monitor, Cláudio Considera.
The positive data from FGV corroborate the bullish scenario shown by the Central Bank Economic Activity Index (IBC-Br), considered the preview of GDP, with an increase of 0.69% in November. The data, released this Monday, 17, was the first positive result after three consecutive falls. Data from the Brazilian Institute of Geography and Statistics (IBGE) pointed to an increase of 0.6% in trade and 2.4% in the provision of services in November. Industrial activity, on the other hand, was practically stagnant, with a 0.2% drop in the month. Domestic GDP shrank 0.1% in the third quarter compared to the previous three months, the second consecutive negative performance. The results for the fourth quarter and for the year 2021 will be released by the IBGE in early March.