The service sector grows 1.3% in Brazil in the second quarter of 2022, compared to the three immediately previous months, reported this Thursday (1st) the IBGE (Brazilian Institute of Geography and Statistics).
The result integrates the calculation of GDP (Gross Domestic Product). Services form the main sector of GDP in terms of supply.
Brazil’s GDP grew 1.2% in the second quarter compared to the previous one, according to information released this Thursday (1st) by the IBGE.
The branch accounts for about 70% of the indicator and encompasses a wide variety of companies. It ranges from small shops, bars and restaurants to financial and educational institutions. It is also the main employer in the country.
Within services, other service activities (3.3%), transport (3.0%) and information and communication (2.9%) advanced and led to this increase. In other service activities, there are face-to-face services, which were dammed during the pandemic, such as restaurants and hotels, for example, says the coordinator of National Accounts at IBGE, Rebeca Palis.
As a result, the other service activities segment is 4.4% above the pre-pandemic level.
With the pandemic, the provision of services suffered a heavy blow from 2020, as it brings together activities that depend on the circulation of consumers. The scenario began to change with the vaccination against Covid-19, which allowed the lifting of restrictions on the flow of people.
In addition to pent-up demand, stimulus measures adopted by the federal government on the eve of the elections also spilled over into the service sector, according to analysts.
Release of withdrawals from the FGTS (Fundo de Garantia do Tempo de Serviço) and anticipation of the 13th of retirees are among the actions recorded in the second quarter.
The recovery of services, however, finds threats in the scenario of the coming months. Inflation still affects the sector’s prices, and higher interest rates play against consumption.
In industry, the 2.2% rise was the second consecutive positive result for the sector, after the 0.9% drop in the fourth quarter of last year, according to the IBGE.
The institute highlights the positive performance of 3.1% in electricity and gas, water, sewage, waste management activities, 2.7% in construction, 2.2% in extractive industries and 1.7% in the processing industries.
Part of the factories still face a shortage of inputs, a situation influenced by the mismatch of production chains in the pandemic. Rising raw material prices also challenge the industrial segment.
Agriculture, the third of the largest sectors of GDP from the perspective of supply, which had fallen by 0.9% in the last quarter, changed by 0.5% in the second quarter of this year.
Agricultural commodity prices rose on the international market after the start of the Ukrainian War in February. However, prices have shown signs of truce in recent months, amid forecasts of a slowdown in the global economy.
Agriculture was also affected this year by drought in producing regions such as the South. Despite the negative weather effects, the harvest of cereals, legumes and oilseeds is expected to reach a record 263.4 million tons in 2022, according to the IBGE’s July estimate.
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