Brazil’s services sector recorded 1.2-percent growth between April and May, outperforming expectations and returning to pre-pandemic levels.
While that had already been the case in February, a second Covid wave forced local governments into issuing new restrictions and slowed the economy down once more. According to the Brazilian Institute of Geography and Statistics (IBGE), growth in April and May compensated for the plunge observed in March.
In May, three of five segments saw positive results:
- Transportation and mail (+3.7 percent);
- Services to families (+17.9 percent);
- Administrative services (+1 percent).
Meanwhile, information and communications fell 1 percent, while other types of services saw activity shrink by 0.2 percent.
Despite posting the biggest jump, however, the services to families segment “remains 29 percent below pre-pandemic levels,” says IBGE manager Rodrigo Lobo.