The Brazilian economy contracted as expected in the three months ended December, largely as a result of weaker output in the industrial sector, according to figures released on Thursday by the Brazilian Institute of Geography and Statistics, or IBGE.
Gross domestic product fell a seasonally adjusted 0.2 percent sequentially in the December quarter, reversing a 0.3 percent expansion in the third quarter.
Further, GDP contracted for the first time since the second quarter of 2021.
Among sectors, output in the industrial sector contributed negatively to GDP, falling 0.3 percent compared to the previous quarter, as production declined in the manufacturing, construction, and utility segments.
Meanwhile, agriculture and livestock and services had a positive variation of 0.3 percent and 0.2 percent, respectively.
On the expenditure side, household consumption grew 0.3 percent and government consumption expenditure also grew the same 0.3 percent. On the other hand, gross fixed capital formation dropped 1.1 percent.
Exports were 3.5 percent higher than in the previous quarter, while imports fell 1.9 percent.
On a yearly basis, GDP growth moderated to 1.9 percent in the fourth quarter from 3.6 percent in the first quarter. That was also below the 2.2 percent rise expected by economists.
During the year 2022, overall GDP advanced 2.9 percent compared with 2021, led by growth in services and industry. .
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