Household consumption, the engine of Brazilian GDP (Gross Domestic Product), grew 2.6% in the second quarter of 2022, compared to the immediately preceding three months. The result was released this Thursday (1st) by the IBGE (Brazilian Institute of Geography and Statistics).
Government consumption fell by 0.9%. Regarding investments, there was an increase of 4.8%.
Total GDP grew 1.2% in the second quarter in Brazil.
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 rise in household consumption is related to the return of the growth of services provided to families, as a result of face-to-face services that are repressed in the pandemic”, says the coordinator of National Accounts at IBGE, Rebeca Palis.
According to her, there was also growth in trade, improvement in the job market, the release of the FGTS emergency withdrawal and the anticipation of the 13th of INSS retirees and pensioners. “All this impacted consumption, despite the increase in inflation and interest,” says Palis.
The second quarter result reflects, in part, the scenario of resumption of economic activities after the impact of the pandemic. The job market also generated stimulus by presenting an increase in employment and a truce in unemployment. High inflation, on the other hand, hinders a more consistent recovery in consumption.
Pressured by the loss of purchasing power of Brazilians, the Jair Bolsonaro (PL) government adopted measures such as the release of withdrawals from the FGTS (Fundo de Garantia do Tempo de Serviço) and the anticipation of the 13th of retirees in the second quarter.
investments
The IBGE also reported this Thursday that productive investments in the Brazilian economy, measured by the GFCF (Gross Fixed Capital Formation) indicator, rose 4.8% from April to June, compared to the three immediately preceding months. The investment rate was 18.7% of GDP in the second quarter.
According to Palis, this growth is linked to construction and information and communication activities.
“In this last activity, the positive performance is especially related to software development. This is one of the activities that were least impacted by the effects of the pandemic, as well as the financial sector, agriculture and extractive industry.”
GDP from the perspective of demand also includes exports, imports and government consumption.
Exports dropped 2.5% in the second quarter, compared to the immediately previous three months. Imports advanced 7.6% in the same period.
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