Household consumption, the engine of Brazilian GDP (Gross Domestic Product), rose 0.7% in the first quarter of 2022, compared to the three immediately previous months, the IBGE (Brazilian Institute of Geography) reported this Thursday (2). and Statistics).
Household consumption is the main component of GDP from the perspective of demand (that is, spending on goods and services). It accounts for about 60% of the indicator’s calculation in the country.
The result for the first quarter reflects a scenario of easing of economic activities after the impact caused by the Covid-19 pandemic.
The lifting of restrictions and the return of spending on services, which had been dammed by the health crisis, were the main factors that led economists in recent weeks to project an advance in the indicator.
“In household consumption, demand is related to services that are mainly done in person, such as activities related to travel”, says Rebeca Palis, coordinator of National Accounts at IBGE.
Analysts, however, estimate that, after the period of return to economic activities, the reaction of consumption may come up against a series of threats in the coming months. One of the main risks is the effect of higher interest rates, in addition to persistent inflation.
The IBGE also reported this Thursday that productive investments in the Brazilian economy, measured by the GFCF (Gross Formation of Fixed Capital) indicator, fell by 3.5%.
“This fall was impacted by the decrease in the production and import of capital goods, despite the construction having grown in the period”, he explains. In the first quarter, the investment rate was 18.7% of GDP, below that recorded in the same period last year (19.7%).
In the external sector, exports of Goods and Services grew by 5.0%, while imports of Goods and Services fell by 4.6% compared to the fourth quarter of 2021.
The first quarter was marked on the international scene by the initial effects of the Ukrainian War.
With the Russian invasion, agricultural commodities and oil rose in prices. In theory, higher prices encourage exports and hinder imports.
Government consumption, in turn, remained stable (0.1%) in the first quarter, according to the IBGE.
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