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GDP: Even the "1%" is starting to be "in danger"

"The outlook for the Brazilian economy, which began the year with a 'dreamy' 3%, has already dropped, according to official government figures, to around 1,5%. In the real world, many people already doubt it will reach 1%. In other words, zero, in practice," says Fernando Brito of Tijolaço.

GDP: Even the “1%” is starting to be “in danger” (Photo: Adriano Machado - Reuters)

By Fernando Brito brick The Brazilian Institute of Geography and Statistics (IBGE) released today the results for the services sector in Brazil for the month of May.

The 3,8% drop, unlike what happened in the industrial sector, weighs heavily in the Gross Domestic Product calculations: it represents 73% of the total economic activity.

In 2018, and over the last 12 months, the accumulated figures returned to clearly negative levels, standing at -1,3% compared to the period from January to May.

Among the subsectors, only the financial intermediation sector (banks) has a positive result, and even then, only by 1%.

The outlook for the Brazilian economy, which began the year with a "dreamy" 3%, has already dropped, according to official government estimates, to around 1,5%.

In the real world, many people already doubt it will reach 1%.

In other words, zero, in practice.