In 2020, due to the adversities brought by Covid-19, the GDP (Gross Domestic Product) fell 4.1% against 2019, the lowest rate of the time series started in1996.

There was increase only in Agriculture (2.0%) and decreases in Industry (-3.5%) and Services (-4.5%). The GDP totaled R$ 7.4 trillion in 2020.

The per capita GDP reached R$ 35,172 in 2020, down 4.8% in real terms. This was also the lowest rate in the time series.

The investment rate in 2020 was 16.4% of the GDP, above the figure of 2019 (15.4%) and the savings rate was 15.0% (compared to 12.5% in 2019).

Compared to the 3rd quarter, in the seasonally adjusted series, the GDP increased by 3.2% in the 4th quarter of 2020. Industry and Services grew by 1.9% and 2.7%, respectively, while Agriculture fell (- 0.5%).

In relation to the 4th quarter of 2019, the GDP fell 1.1% in the last quarter of 2020. Negative results were registered in Agriculture (-0.4%) and Services (-2.2%), while Industry (1.2%) grew.

GDP falls 4.1% in 2020

In 2020, the GDP decreased 4.1% in relation to the previous year. There was a 3.9% drop in Value Added at basic prices and a 4.9% drop in the volume of Net Taxes on Products.

The result of Value Added in this type of comparison affected the performance of the three activities that comprise it: Agriculture (2.0%), Industry (-3.5%) and Services (-4.5%).

Consequently, the per capita GDP decreased (in real terms) 4.8% compared to the previous year, reaching R$ 35,172 (in current values) in 2020.

The change in volume of the Value Added of Agriculture in the year 2020 (2.0%) was due to the growth in production and productivity gains in the activity, which offset the weak performance of Livestock and Fisheries, especially soybeans (7.1%) and coffee (24.4%), which hit record in the time series.

In Industry (-3.5%), the negative highlight was the performance of the Construction activity (-7.0%), which fell again this year. The activity of the Manufacturing Industries also decreased (-4.3%), mainly influenced by the decrease, in volume, of the Value Added of the manufacture of motor vehicles; other transportation equipment, apparel manufacturing and basic metals.

Electricity and gas, water, sewage and waste management activities had a negative change of 0.4% compared to 2019. Although tariff flags were more favorable in 2020, social isolation and low economic activity were decisive for the negative result. The Mining and Quarrying Industries, in turn, grew 1.3%, due to the increase in oil and gas production that offset the fall in the extraction of iron ore.

In the activities comprised in Services, the negative changes were: Other service activities (-12.1%), Transportation, storage and mailing (-9.2%), Public administration, defense, health and education and social security (- 4.7%), Trade (-3.1%), Information and communication (-0.2%). Financial activities, insurance and related services (4.0%) and real estate activities (2.5%) increased.

It is worth noting that both services rendered to families, which belong to Other service activities, and transportation were the most affected by social distancing due to the COVID-19 pandemic.

In the analysis of the expense, there was a negative change of 0.8% in the Gross Fixed Capital Formation. Household Consumption Expenditure decreased 5.5% in relation to 2019, mainly due to the worsening in the labor market and social distancing due to the COVID19 pandemic in 2020. Government Consumption Expenditure, in turn, decreased 4, 7%.

In the external sector, Exports of Goods and Services fell by 1.8%, while Imports of Goods and Services fell by 10.0%.

GDP reaches R$ 7.4 trillion in 2020

In the cumulative rate of the year, the GDP in current values ​​totaled R$ 7.4 trillion, of which R$ 6.4 trillion refers to VA at basic prices and R$ 1.0 trillion to Net Taxes on Products.

The investment rate in 2020 was 16.4% of the GDP, above that observed in 2019 (15.4%). The savings rate was 15.0% (compared to 12.5% ​​in 2019).

GDP grows 3.2% in relation to Q3 2020

The GDP grew 3.2% in the 4th quarter of 2020 compared to the  previous quarter (seasonally adjusted). Industry and Services showed a positive change of 1.9% and 2.7%, respectively, while Agriculture decreased 0.5%.

Among industrial activities, the increase occurred only in Manufacturing Industries (4.9%). Mining and Quarrying Industries (-4.7%), Electricity and gas, water, sewage, waste management activities (-1.2%) and Construction (-0.4%) decreased in the period.

In Services, the activities of Other services (6.8%), Transportation, storage and mailing (6.2%), Information and communication (3.8%), Trade (2.7%), Public administration, defense, health and education and social security (1.8%) and Real estate activities (0.8%) showed growth. Financial activities, insurance and related services (-0.3%) had a negative change.

By the expenditure approach, the highlight was the Gross Fixed Capital Formation with a 20.0% growth. Household Consumption Expenditure and Government Consumption Expenditure also increased, respectively, 3.4% and 1.1% in relation to the previous quarter.

Exports of Goods and Services fell 1.4%, while Imports of Goods and Services increased 22.0% in relation to the third quarter of 2020.

Compared to Q4 2019, GDP falls 1.1%

Compared to the 4th quarter of 2019, the GDP decreased by 1.1%, the fourth consecutive negative result, after 12 quarters of increase in this comparison. The Value Added at basic prices decreased by 1.4% and Net Taxes on Products showed a positive change of 0.2%.

Agriculture presented a negative change of 0.4% in relation to the same period of the previous year, with a highlight to products whose harvests are significant in the 4th quarter, such as oranges (-10.6%) and tobacco (-8.4%).

Industry advanced 1.2%.

The growth was driven by the Manufacturing Industries (5.0%) whose positive result was influenced by the increase in the manufacture of machinery and equipment; manufacture of metal products; basic metals; and manufacture of rubber products.

The volume of Electricity and gas, water, sewage, waste management activities also increased (1.5%). The Mining and Quarrying Industries, in turn, decreased (-6.7%) driven mainly by the retraction of the extraction of oil and natural gas. Construction (-4.8%) continued to fall, driven by infrastructure works.

Services fell 2.2% compared to the same period last year. The fall was caused by the negative results of Other services (-9.4%), Transportation, storage and mailing (-4.3%) and Public administration, defense, health and education and social security (-3.8% ). The other activities grew: Real Estate Activities (3.5%), Financial activities, insurance and related services (3.1%), Trade (2.5%) and Information and Communication (2.4%).

Among the components of the domestic demand, Household Consumption Expenditure (-3.0%) and Government Consumption Expenditure (-4.1%) decreased, while Gross Fixed Capital Formation rose (13.5%) %) in relation to the same period of the previous year. In the external sector, Exports of Goods and Services fell 4.3%, while Imports of Goods and Services fell by 3.1% in the fourth quarter of 2020.