Transportation and dining services grow at record pace in 2022

In 2022, Brazilian families spent much more on services such as restaurants and travel than on purchasing appliances or clothing, according to the latest data from national statistics institute IBGE.

Last year was the second consecutive year of growth for services, which rose 8.3 percent (3.1 percent in December alone) — a record level in the historical series that began in 2011. The sector also expanded at a faster pace than before the pandemic, 14.4 percent above February 2020, for example.

Services sector Brazil 2022

Compared to the retail figures released by IBGE the day before (growth of 2.6 percent in December and just 1 percent in 2022 as a whole), it is clear that Brazilians are choosing leisure and other types of experiences over buying things, even with high inflation and interest rates.

In 2021, the services sector had grown by 10.9 percent (mainly from the second half of the year) compared to a disastrous 2020, when Covid isolation measures were stricter and the sector shrank by 7.8 percent.

For IBGE research analyst Luiz Almeida, the resumption of in-person activities is still an important factor in explaining the sector’s 2022 growth. Mainly in transport, auxiliary transport services, and mail (13.3 percent), the primary activities pushing the sector throughout the year.

“The transport sector has grown since 2020, but with different dynamics: initially, because of the logistics related to delivery services. In 2022, the influence of cargo transport remained, driven by agricultural production, but also by the resumption of tourist activities, impacting the index in passenger transport,” said the researcher in a press release.

Administrative services — which include, for example, car leasing companies, electronic payment solutions, and conference and event organization — was the second segment with the most significant impact on the overall indicator, growing by 7.7 percent in 2022.

The third most influential variable is made up of services provided to families, which includes activities such as restaurants, hotels, buffets, catering, and gyms. They increased by 24 percent altogether.

Tourism services

Regular analysis by the IBGE on the performance of a group of tourist activities in 12 states points to growth of 4.1 percent in December and 29.9 percent in 2022 as a whole. Minas Gerais, São Paulo, and Rio de Janeiro were the states with the highest expansion — 49.4, 36, and 16.1 percent, respectively.

According to the IBGE, this dataset is also 1.5 percent above pre-pandemic levels (February 2020) and just 5.5 percent below the peak of the historical series in February 2014.

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