Rio de Janeiro – The first preview of the Economic Activity Indicator (IAE, in the Portuguese acronym) from Fundação Getulio Vargas (FGV) showed 0.6% growth in May over April 2020. According to FGV, the result comes as a minor recovery in the wake of sharp drops in March and April as a consequence of the Covid-19 pandemic. Nevertheless, the economy is still falling way short of pre-pandemic levels.
Industry and services activity declined in May, although by less than in April. The process industry was worst hit, with construction coming in second. When it comes to services, commerce and transportation slowed down the most.
The IAE-FGV is an anticipation of economic trends; the official economic performance indicator is the one from the Brazilian Institute of Geography and Statistics (IBGE).
Translated by Gabriel Pomerancblum
