Agriculture plummets 8% and pulls GDP down in the 3rd quarter

Agriculture dropped 8% in the third quarter of 2021 compared to the second quarter and drove the 0.1% drop in GDP in the period, together with the decline in exports (-9.8%) .

It was the worst quarterly fall in the sector since the 1st quarter of 2012 (-19.6%), as reported by the Brazilian Institute of Geography and Statistics (IBGE) on December 2nd.

The result led the country to a new technical recession, which occurs when the economy has two consecutive quarters of retraction.

The decline of agro in GDP was a consequence of the end of the soybean harvest, which is concentrated in the first two quarters of the year. As a result, exports were also impacted, as grain is the main product that Brazil sells.

Year to Date

Compared to the third quarter of 2020, agriculture and cattle raising fell by 9.0%, mainly impacted by the performance of some crop products that have a relevant harvest in the period and that had a retraction in the annual production estimate and loss of productivity. These are:

Coffee (-22.4%);
Cotton (-17.5%);
Corn (-16.0%);
Orange (-13.8%);
Sugarcane (-7.6%).

In addition, estimates for livestock also had a poor performance in the quarter analyzed, said the IBGE.

Source: G1

To read the full original article, access the link: https://g1.globo.com/economia/agronegocios/noticia/2021/12/02/agropecuaria-despenca-8percent-e-puxa-queda-do-pib-no- 3rd-quarter.ghtml

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