Brasil
September 6th, 2024
1. GDP grows in the second quarter, indicating economic recovery
In the second quarter of 2024, Brazil’s Gross Domestic Product (GDP) grew by 1.4%, according to data from the Brazilian Institute of Geography and Statistics (IBGE). This growth, surpassing the expectations of many analysts, signals a gradual economic recovery, driven primarily by the services and trade sectors.
There was a decline in the industrial sector in July, but analysts do not interpret this as a sign of prolonged slowdown. Instead, the drop was attributed to seasonal adjustments and temporary factors, with the resilience of the industrial sector being a positive aspect – along with optimistic expectations for short-term recovery.
IBGE: PIB cresce 1,4% no segundo trimestre de 2024
2. X blocked in Brazil
X, formerly known as Twitter, was blocked in Brazil last week due to a decision by the Federal Supreme Court (STF). The decision was due to concerns about the platform’s non-compliance with court orders related to the removal of harmful content and the spread of false information.
The Court’s decision was upheld by other ministries, with Justices understanding that the block was necessary to ensure the enforcement of legal guidelines. The Court ordered the block to ensure that the company complies with Brazilian regulations on data protection and the fight against disinformation, setting a significant precedent for the regulation of digital platforms in the country. However, the action has sparked debates about the balance between regulation and freedom of speech.
Valor Econômico: 1ª Turma do STF confirma suspensão do X
3. Industrial production drops by 1.4% in July
Brazil’s industrial production dropped by 1.4% from June to July, according to the Monthly Industrial Survey released by the Brazilian Institute of Geography and Statistics (IBGE).
According to IBGE, the industry has accumulated growth of 2.2% in the 12 months leading up to July. In the year 2024 so far, the increase is 3.2%. However, Brazil’s industrial sector remains 15.5% below the record level reached in May 2011 and 1.4% above the pre-pandemic level registered in February 2020.
IBGE: Produção industrial recua 1,4% em julho
Valor Econômico: Produção industrial brasileira cai 1,4% em julho, pior que o esperado
4. Drought and excessive heat lead ANEEL to raise energy prices
On Wednesday (4), the Brazilian Electricity Regulatory Agency (ANEEL), the country’s energy regulator, announced increased energy tariffs for September, the so-called Red Flag Level 1, after reviewing the calculations related to energy generation costs. The flag indicates higher costs for electricity generation and is a response to adverse conditions such as low water availability in hydroelectric reservoirs.
The decision was made due to the increased costs of thermal energy, which has been used more extensively to compensate for the low hydroelectric output. The measure aims to balance the electrical system and ensure energy supply amid unfavorable weather conditions. Red Flag Level 1 directly impacts consumers and businesses with higher energy bills.
5. Unemployment rate falls to 6.8% in the quarter ending in July
Brazil’s unemployment rate was 6.8% in the quarter ending in July, according to the Continuous National Household Sample Survey (PNAD) released by the Brazilian Institute of Geography and Statistics (IBGE).
This is the best result for a quarter ending in July in the last 10 years. In the comparable series, it is the lowest rate since the quarter ending in January 2014 (6.5%). The survey also shows that the absolute number of unemployed individuals fell by 9.5% compared to the previous quarter, reaching 7.4 million people. Compared to the same quarter in 2023, the decline is 12.8%.
G1: Desemprego cai a 6,8% no trimestre terminado em julho, diz IBGE
IBGE: PNAD Contínua: taxa de desocupação é de 6,8% e taxa de subutilização é de 16,2% no trimestre encerrado em julho