Good morning! Today, we explain what the latest GDP data reveals about the Brazilian economy. The monster result posted by Petrobras. And the historic rout of healthcare giant Hapvida.
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Q4 GDP data confirms slowdown
At first glance, Brazil’s Q4 GDP report seems upbeat: the economy grew 2.9 percent in 2022, the same rate posted by the U.S. (which analysts hailed as “solid growth”). But markets expected the Brazilian results to be a bit better, north of 3 percent.
- Moreover, the GDP shrank by 0.2 percent in the last quarter of 2022, showing that the economy is slowing to a crawl. Things are only likely to get worse in the near future, especially as global economies sputter and recession fears mount.
By the numbers. The services sector drove growth, expanding 4.2 percent in 2022 as a whole. Industrial output rose 1.6 percent, while agribusiness — usually Brazil’s most buoyant sector — dropped by 1.7 percent annually.
- “Affected by adverse climate events, soybean production was the most responsible for the negative results,”...