The Brazilian Industrial Production Index grew by 10.9% in May compared to the same month in 2020. It was a significant growth that made the index return to pre-pandemic levels. The data is calculated by the Agribusiness Studies Center of the Getúlio Vargas Foundation (FGV Agro).
According to the data, non-food products where what spurred the growth, which registered an increase of 27.9%, maintaining the index above 20% for 3 consecutive months (21.5% in May, 37.1% in April and 27.9% in May).
In the group of non-food products, textiles and rubber stand out, increasing by 76.2% and 73.9% respectively, compared to May 2020. In the group of food products, the beverages sector stood out , which had a positive outcome of 21% in the same comparison.
The agricultural sector played an important role in the growth of Brazil’s GDP in the first quarter of 2021 {hyperlink to our blog}, where it increased by 5.7%. Demand for agricultural commodities helped drive that number.
Important factors such as the increase in vaccination rate and the gradual return to activities hard hit by the pandemic are fundamental to the growth of the agroindustrial sector in the country.
Written by Marcos Ferreira, content assistant at Drummond Advisors
