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Agribusiness should be an engine of economic recovery, highlights PwD

Posted by Marina
Brazil's Gross Domestic Product (GDP) fell 9.7% in the second quarter of 2020, compared to the first three months of the year. The data were released this Tuesday (1st) by the Brazilian Institute of Geography and Statistics (IBGE). In relation to the same period last year, the decrease recorded is 11.4%.

The main results show that the biggest fall was in Industry (-12.3%), followed by Services (-9.7%), in relation to the first quarter. In turn, Agropecuária presented a positive variation of 0.4%, in the same comparison. The analyzed period corresponds to the months in which the new coronavirus pandemic had the greatest economic impact.

Despite the bad scenario in most sectors, Brazilian agribusiness was essential in this period and went in the opposite direction in relation to other segments since, in general, even with the intense thud, the field resisted and prevented an even greater setback of the activity national economic policy.

"The GDP results revealed what many analysts had already expected: Brazilian agribusiness showed good results even during the pandemic. Agricultural activities, since they were considered essential, did not stop", analyzes Maurício Moraes, partner and agribusiness leader at PwC Brasil .

In comparison with the second quarter of 2019, Agropecuária grew 1.2%, compared to the same period in 2019, which can be explained, mainly, by the performance of some crop products that have a relevant harvest in the second quarter and by the productivity.

Industry had a drop of 12.7%, the most intense of the historical series, in this comparison. The Extractive Industries, on the other hand, presented a positive variation of 6.8%, with an increase in oil extraction. The extraction of ferrous ores continues to fall, but at lower rates. And finally, the Services sector decreased 11.2% compared to the same period in 2019.

Maurício also points out that the record production, the Chinese appetite for Brazilian products and the favorable exchange rate allowed good exports, avoiding an even more painful result for the GDP.

"During the first half of 2020, there was a strong export of soybeans, corn and sugar, with emphasis on the good prices of soybeans in the period which, together with the exchange rate, contributed to the results disclosed. The 2019-2020 harvest was a record and the trend is that we have a record harvest for 2020-2021 ", he points out.