The Brazilian economy retreated 0.1% in the third quarter of 2021, compared to the three previous months, according to the Gross Domestic Product data released this Thursday (2) by the Brazilian Institute of Geography and Statistics.
The number came in slightly below financial market expectations. Analysts consulted by Bloomberg agency projected null variation (0%).
This is the second consecutive low for the indicator, which renews signs of stagnation in economic activity. In the second quarter, the fall in GDP was revised from 0.1% to 0.4%.
The IBGE and economists interviewed by Folha claim that two consecutive falls do not necessarily constitute a recession, a concept that technically depends on the analysis of other key data. The weak performance occurs in a context of escalating inflation, higher interest rates and weaknesses in the labor market, which make it difficult for economic activity to recover. GDP is 0.1% below the level recorded at the end of 2019, the pre-pandemic period, and 3.4% below the highest point in the historical series, the first quarter of 2014.
Translated by Kiratiana Freelon