Brazil's GDP Grew 4.6% in 2021: Find Out Which Sectors Boosted the Economy and Increased the Employment Rate

Brazil’s GDP Grew 4.6% in 2021: Find Out Which Sectors Boosted the Economy and Increased the Employment Rate

Written by Junior Aguiar

Published on 10/03/2022 at 13:48

Dados superam expectativas do mercado financeiro | Imagem: InfoMoney via Google

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The Information and Communication Sectors, Followed by Transport, Storage, and Post, Were the Ones That Pulled the Numbers of the Brazilian Economy Up.

The data from the Brazilian Institute of Geography and Statistics (IBGE) for the economy indicates that Brazil’s Gross Domestic Product (GDP) in 2021 exceeded financial market expectations of 0.1% by reaching a growth of 4.6%, with R$ 8.7 trillion. The number of jobs reached 3.6 million between October and December, causing unemployment to drop to 11%.

The growth of GDP in Brazil in 2021 contrasts with the year 2020, when it did not exceed 3.9%. The 4.6% in 2021 is considered the best result since 2010, when the economy grew by 7.5%.

The good results compared to the year before last, according to analysts, are because 2020 was the hardest year of the Covid-19 pandemic, which not only caused loss of life but also economic contractions. The calculation of Brazil’s GDP is produced using data from IBGE, the Central Bank, the Federal Revenue, and the Getúlio Vargas Foundation.

ARTICLE CONTINUES BELOW

Brazil Exits Technical Recession with GDP Growth, but the Moment Remains a Time of Caution in the Economy

The country exited what is known as a technical recession, which is characterized by two consecutive quarters of GDP decline. In the second quarter of 2021, the economy showed a decrease of 0.3%, and in the third quarter, a contraction of 0.1%.

Although Brazil is now 0.5% above the fourth quarter of 2019, pre-pandemic period, GDP is still 2.8% below the historical series point reached in the first quarter of 2014.

The Federation of Industries of the State of São Paulo (Fiesp) predicts difficulties for GDP this year in 2022 and estimates growth below 1%. The institution itself considers that there are “difficult facts to justify based on the current fiscal scenario and the absence of a water crisis or a worsening of the pandemic.”

Economists from the financial market project growth of only 0.3% for GDP in 2022, the Central Bank projects growth of 1% for this year, and the Ministry of Economy expects a percentage of 2.1%.

YEAR	Percentage (%)
2010	+7.5
2011	+4
2012	+1.9
2013	+3
2014	+0.5
2015	-3.5
2016	-3.3
2017	+1.3
2018	+1.8
2019	+1.2
2020	-3.9
2021	+4.9

GDP Performance in Recent Years: Source IBGE

Sectors That Made 2021 Recover the Losses of 2020

Economic growth was driven by increases in the services sectors (4.7%) and industry (4.5%). These areas represent 90% of Brazil’s GDP and also contribute to job creation.

The services sector includes: Information and communication (12.3%), transport, storage, and post (11.4%), commerce (5.5%), real estate activities (2.2%), public administration, defense, health, and education, and social security (1.5%), and financial activities, insurance, and related services (0.7%).

In industrial growth, it is worth highlighting construction (9.7%), which had fallen by 6.3% in 2020. The manufacturing industries grew by 4.5% due to high demand for the manufacturing of machinery and equipment, metallurgy, manufacturing of other transport equipment, and production of non-metallic mineral products, in addition to the automotive industry.

Brazil’s GDP Grew 4.6% in 2021: Find Out Which Sectors Boosted the Economy and Increased the Employment Rate

The Information and Communication Sectors, Followed by Transport, Storage, and Post, Were the Ones That Pulled the Numbers of the Brazilian Economy Up.

Brazil Exits Technical Recession with GDP Growth, but the Moment Remains a Time of Caution in the Economy

Sectors That Made 2021 Recover the Losses of 2020

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China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

Canada is preparing a billion-dollar megaproject with 3.5 GW of wind energy, up to 530 turbines, green hydrogen, and ammonia for export, in a bid that could place the country at the center of the new global race for clean fuels.

Saudi Arabia and Qatar signed the agreement to connect Riyadh to Doha with a high-speed train traveling at 300 kilometers per hour, covering 785 kilometers of desert in about two hours.

Brazil’s GDP Grew 4.6% in 2021: Find Out Which Sectors Boosted the Economy and Increased the Employment Rate

The Information and Communication Sectors, Followed by Transport, Storage, and Post, Were the Ones That Pulled the Numbers of the Brazilian Economy Up.

Brazil Exits Technical Recession with GDP Growth, but the Moment Remains a Time of Caution in the Economy

Sectors That Made 2021 Recover the Losses of 2020

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

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Brazil, Norway, and the Netherlands aim to create the first green maritime corridor in the Atlantic, after routes emitted 4.7 million tons of CO₂e, and seek to transform ports, fuels, and trade between South America and Europe into a new global logistics race.

Canada is preparing a billion-dollar megaproject with 3.5 GW of wind energy, up to 530 turbines, green hydrogen, and ammonia for export, in a bid that could place the country at the center of the new global race for clean fuels.

Saudi Arabia and Qatar signed the agreement to connect Riyadh to Doha with a high-speed train traveling at 300 kilometers per hour, covering 785 kilometers of desert in about two hours.