On December 3 local time, the latest data released by Brazil’s National Institute of Geography and Statistics (IBGE) showed that the country’s GDP in the third quarter of 2020 increased by 7.7% month-on-month compared with the second quarter of this year.
The report points out that although the relevant economic data have risen, it is still lower than the government and market expectations.
According to local analysts’ previous forecasts, Brazil’s economic growth rate in the third quarter was 8.7% compared with the previous quarter, compared with the country’s economic ministry’s expectation of 8.3%.
On the other hand, the report believes that although GDP achieved month-on-month growth in the third quarter, Brazil’s economy has not returned to pre-epidemic levels.
The statistic shows that the GDP figure fell 4.1% in the third quarter of this year compared with the fourth quarter of 2019, compared with the same period last year.
IBGE researchers pointed out that from the economic field, Brazil’s trade and industry have returned to pre-epidemic levels, but the service industry, which accounts for the largest proportion of GDP, is still at the level at the beginning of 2017, which is also one of the main reasons why the overall economy of the country has not recovered from the epidemic.
The researchers expect GDP growth may slow down in the last quarter of this year, and Brazil’s economic growth rate may return to 2019 levels sometime in 2021 or 2022.