Today, we look ahead to Brazil’s GDP announcement for Q2. Half a year since the first Covid-19 case in Latin America. And the region looks to take advantage of global shifts in supply chains.
Upcoming Brazil GDP results to wipe out 11 years of growth
Brazil is set to publish its official Q2 GDP figures on September 1. We already know that the drop will be significant, as economic activity was halted for much of the quarter. Reporter José Roberto Castro shows that, according to most financial institutions’ projections, the quarterly drop will be somewhere between 8 and 10 percent.
Why it matters. If projections are confirmed, it means that the Brazilian economy will regress to levels recorded in Q3 2009 — meaning that the pandemic has scrapped 11 years of (feeble) growth.
Winners and losers. Thanks to food exports, Brazil’s agribusiness is set to have a year of growth (projected at 3.2 percent for 2020). But the rest of the economy is perishing. The services sector has been hit hard by the suspension of the in-person economy, with industry — which are reliant on family consumption — finding itself 10 percent below Q4 2018 levels.
Silver lining. Forecasts for...