Brazil's GDP Strongest Decline in 30 Years, Down 4.1% in 2020

Drops in household consumption and the service sector are negative highlights

São Paulo and Brasília

The Brazilian economy registered a record contraction of 4.1% in 2020, as a result of the economic impact generated by the novel coronavirus pandemic, according to GDP (Gross Domestic Product) data released this Wednesday (3) by IBGE (Brazilian Institute of Geography) and Statistics).

This is the most significant drop in the historical series with the current methodology, which starts in 1996, surpassing the retraction of 3.5% registered in 2015.

In a longer series, prepared by IBGE and Ipea (Institute of Applied Economic Research) beginning in 1901, the biggest drop had been 30 years ago (-4.35% in 1990). Compared to this data, the fall of 2020 was the third-worst on record - the second-biggest decrease was in 1981 (-4.25%).

The institute also informed that Brazil's GDP recovery in the third quarter of last year lost strength in the last three months of the year.

Translated by Kiratiana Freelon

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