The second preliminary results for the Economic Activity Indicator (IAE-FGV), compiled by the FGV´s Brazilian Institute of Economics (FGV IBRE), point to a 1.4% decline in economic activity in the first quarter of the year, compared to the fourth quarter of 2019. Between February and March, the indicator fell 5.6%. This result shows the first negative impacts of COVID-19 on the Brazilian economy. Both rates were calculated in seasonally adjusted terms and are compared to the immediately preceding periods.

Year-over-year, the economy grew 0.1% in the first quarter of 2020, while it shrank 1.4% in March.

IAE-FGV is an indicator that anticipates trends in the Brazilian economy. Three versions of it are calculated every month, based the main monthly activity surveys disclosed by the national statistics agency, IBGE, in particular the Monthly Industrial Survey – Physical Production (PIM-PF), Monthly Trade Survey (PMC) and Monthly Service Survey (PMS).

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