The Brazilian Gross Domestic Product (GDP) advanced 0.5% in May compared to April, according to the GDP Monitor, released on Wednesday by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV). The high broke a sequence of three monthly declines in a row.
Compared to May 2018, GDP grew 4.3%, but the result was contaminated by the weak comparison base, as last May’s economic activity was hit hard by the truckers strike, which stopped the country.
According to FGV, from April to May, the growth is “explained mainly by the performance of agriculture (13%) and industry (0.6%), with growth in all its components.”
“The services sector has been stagnant, although all activities have grown except for other services,” the statement said. From a demand perspective, only gross fixed capital formation grew (1.5%).
In comparison with May 2018, the 4.3% growth “was influenced by the low comparison base due to the May 2018 trucker strike.”
Thus, among the components of GDP, the only activities that presented retraction “were financial intermediation (-0.1%) and mineral extraction (-7.0%), due to the effects of the Brumadinho tragedy.” From the standpoint of demand, all components have advanced.