Boosted by Consumption, Brazil's GDP Expected to Return to Pre-Recession Level by 2020

Under the influence of lower interest rates and FGTS, families sustain recovery, but investment skates

São Paulo

Responsible for almost two-thirds of the national GDP (Gross Domestic Product), household consumption is the main acceleration engine of economic activity in this second semester.

Household consumption, maintaining this pace next year,  is expected to boost demand to the levels seen before the onset of this decade's recession.

Real. (foto Gabriel Cabral/Folhapress)

Two other components, government consumption, and the external sector contributed negatively to growth this year.

Investment is still recovering, but it is still far from its peak in 2013.

After slowing in the first two quarters of the year, the Brazilian economy has shown signs of recovery in recent months.

Most credit-dependent sectors are already estimated to be benefiting from some interest on some lines of credit and are freeing up funds from the FGTS (Activated Lifetime Guarantee Fund), activated as a bonus on retail sales for this purpose. The most income-dependent sectors, on the other hand, are taking longer to recuperate.

Translated by Kiratiana Freelon

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