MercoPress. South Atlantic News Agency

IBGE finds 2% interannual growth in services

The IBGE recorded no overall changes between April and May

Services in South America's largest country grew 2% interannually in the first five months of 2024, according to a report released Friday by Brazil's Institute of Geography and Statistics (IBGE). Over the past 12 months through May, the index rose 1.3%. The sector accounts for about 70% of the country's gross domestic product (GDP). The sector also grew by 2.3% last year, making it the third in a row with positive figures.

In May, the IBGE also noted that the sector was 12.7% above pre-pandemic levels (February 2020), but unchanged from April's figures. It also represented 0.8% year-on-year progress from May 2023, although 0.9% below the all-time high recorded in December 2022.

Of the five activities tracked by the survey, three declined in May, most notably transport, which fell 1.6% due to lower revenues from air ticket sales. Other decreases were recorded in information and communication (-1.1%) and other services (-1.6%). The volume of passenger transport in Brazil fell by 7% in May compared with the previous month, in the seasonally adjusted series, after rising by 10.4% in April. Meanwhile, freight transport decreased by 0.6% in May 2024. On the other hand, household services increased by 3%, followed by the services of professionals, administrative, and complementary ones with an adjustment of +0.5%.

Tourism fell 0.2% in May compared to April, after two consecutive positive results that added up to an increase of 2.4%, which placed it 4.6% above February 2020 and 3% below the series peak in February 2014.