The Gross Domestic Product (GDP) of Brazil grew by 4.6% in 2021 compared to the previous year, after having registered a positive year-on-year variation of 1.6% in the last quarter of the year, according to data released by the Brazilian Institute of Geography and Statistics (Ibge).

The largest economy in Latin America also managed to get out of the technical recession after posting a positive quarter-on-quarter variation in the last quarter (0.5%), after the negative records observed in the second and third quarters.

The result achieved in 2021 contrasts with the historical collapse observed in 2020 as a result of the pandemic, when the Brazilian GDP contracted by 3.9%.

2021 growth was driven by industry (4.5%) and the services sector (4.7%). In contrast, agriculture posted a negative variation of 0.2% as a result of the droughts during the third quarter, which adversely affected the primary sector and exports of crops such as sugar, corn or coffee.

In industry, the momentum observed during the period is explained by the construction boom (9.7%), which recovered from the 6.3% drop recorded in 2020. For its part, extractive industries grew by 3 % due to the increase in the extraction of iron ore.

K. Tovar

Source: Swissinfo

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