GDP: agriculture rises 21.6% in the first quarter – 06/01/2023 – Market

Brazilian agriculture grew 21.6% in the first quarter of 2023, compared to the fourth quarter of 2022. It is the highest increase in the segment since the fourth quarter of 1996, according to GDP (Gross Domestic Product) data released this Thursday (1st) by the IBGE (Brazilian Institute of Geography and Statistics).

Meanwhile, the services sector had an increase of 0.6% in the first quarter of 2023, compared to the immediately previous three months. Industry showed relative stability, with a slight negative change of 0.1%.

The first quarter of 2023 was marked by the impact of more favorable weather conditions for agricultural production in almost the entire country.

The situation contrasts with the previous summer, when the lack of rain harmed crops in different states.

An estimate for April and released in May by the IBGE indicated that the national harvest of cereals, legumes and oilseeds should record a record in 2023, totaling 302.1 million tons. This is a value 14.8% higher than the harvest obtained in 2022.

In the case of services, the remnants of the exit from the pandemic still influenced consumption in part of the sector in the first quarter, analysts say.

The segment is the largest employer in the country and the main component of GDP from the perspective of supply, with a weight of around 70% in the indicator.

The scenario of the first quarter was also marked by payments of the Bolsa Família in the government of Luiz Inácio Lula da Silva (PT). The social program replaced the Auxílio Brasil, opening up the possibility of additional payments for families contemplated by the resources.

The transfers were seen by analysts as stimuli to the consumption of industrial goods and services. The resumption of the labor market, despite the recent signs of loss of breath in the generation of jobs, was also considered as an incentive factor for economic activity.

High interest rates, on the other hand, made credit more expensive in the country. The scenario worries businessmen from sectors such as industry. Factories still see challenges abroad with projections of a slowdown in the international economy.