Brazil’s Gross Domestic Product (GDP) for the first quarter 2021 has increased by 1.2% when compared to the past 3 months. In comparison with the first three months of 2020, the increase was 1%. The data is from the Brazilian Institute of Geography and Statistics (IBGE).
In gross, the GDP of the 1st quarter of 2021 totaled R$2.048 trillion. The investment rate in this period was 19.4% of GDP, against 15.9% in the same cycle in 2020.
Economic indicators surprisingly trended positively in recent months, factors that caused the expectation of GDP growth for the year to jump from 3.2% to 3.96%. The Minister of Economy, Paulo Guedes, estimated a growth of up to 5% in GDP in 2021.
In 2020, which was the first year of the coronavirus pandemic, the economy took a big hit, shrinking by 4.1%. Projections expected an increase of approximately 0.7% in the GDP in the first three months of 2021, but the actual numbers, which registered an even greater increase, bring a scenario of good expectations for the country.
The main standouts in this economy for the first half were for the sectors of imports (11.6%), agriculture (5.7%) and investments (4.6%). Demand for agricultural commodities helped boost Brazil’s GDP. Demand for food such as corn and soybeans increased compared to the same period last year.
The factor of greater adaptation of companies in relation to sanitary measures was also fundamental to the advancement of the economy. Companies were able to better adapt to the home office model and, consequently, the impact of the pandemic was smaller than last year.