In the seasonally adjusted series, FGV’s GDP Monitor shows a 0.3% increase in economic activity in January compared to December and 0.2% in the mobile quarter ended in January (quarter Nov-Dec/18- Jan/19 compared to quarter Aug-Sep/18). In the year-on-year comparison, economic activity also showed positive results, with a growth of 1.1% in the month and 0.7% in the quarter.

“FGV’s GDP Monitor shows that, in January, the Brazilian GDP reported growth in the monthly and quarterly variation rates, either in the seasonally or year-on-year analysis. Nevertheless, what has been observed since late 2018 is a weakening of the economy explained, mainly due to the slowdown of the processing activity. This activity has great power to boost other segments of the economy, directly impacting investments, which have already begun to cool down. For these reasons, despite the positive variations, the economic scenario is not encouraging,” said Claudio Considera, Coordinator of FGV’s GDP Monitor.

In the comparison with the immediately previous month, in the series free of seasonal effects, economic activity grew by 0.3% in January, with positive variations in the three major sectors of activity. In comparison with the same month of the previous year, the activity reported a 1.1% growth in January. In this comparison, only the processing industry, construction and taxes reported a decrease (-2.9%, -1.5%, and -1.5%, respectively). The other components of the economic activity, both supply and demand, showed a positive variation, in particular the significant performance of exports, imports, and agriculture & livestock (14.2%, 7.7%, and 6.5%, respectively).

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