Brazil’s Gross Domestic Product (GDP) grew by 1.1% in 2018 in relation to the previous year, reaching R$ 6.8 trillion in the period. This marks the second consecutive year of economic growth after two years of recession. The data was released by the Brazilian Institute of Geography and Statistics (IBGE) on Thursday (28).
The result was impacted mainly by the good performance of the service sector, which grew by 1.3% last year. According to the IBGE, all seven main branches of economy activity saw growth, including trade (+ 2.3%) and real estate activities (+ 3.1%).
Last year’s GDP was also influenced by the positive results of the agriculture and livestock sectors (up 0.1%) and industry (+0.6%).
According to the survey, this was the first time the industrial sector grew after four consecutive years of contraction. Performance in the sector was driven, among others, by increased activity in electricity and gas, water, sewage, and waste management sector (+ 2.3%). In agriculture and livestock, the result is mainly explained by the former, which saw great harvests of coffee, cotton, wheat, and soy.
The result is in line with the expectations of the financial market and confirms the recovery trajectory of the Brazilian economy after two years of GDP decline.
According to IBGE, consistently low inflation and the slight improvement in labor market numbers have contributed to the overall positive performance of the economic activity. The financial market expects the Brazilian economy to grow 2.65% this year.
ISSUED BY: BRAZIL GOVERNMENT NEWS