RIO DE JANEIRO, Feb. 2 (Xinhua) — Brazil’s industrial production fell 4.5 percent in 2020, due to the impact of the novel coronavirus disease, the state-run Brazilian Institute of Geography and Statistics (IBGE) said on Tuesday.
According to the IBGE report, industrial production in Brazil, the largest economy in Latin America, dropped for the second year in a row, after declining 1.1 percent in 2019.
In December 2020, the index rose 0.9 percent compared to November, marking the eighth consecutive monthly rise, although it was not enough to reverse the impact of the COVID-19 pandemic in March and April.
Compared to December 2019, Brazilian manufacturing production grew 8.2 percent in the 12th month of last year, while in the final quarter of 2020, it grew 3.4 percent.
“It is clear that there is an improvement in industrial production, but there is still a lot of room for it to grow,” the IBGE said.
The IBGE said the industrial sector that contracted the most in 2020 was automobile manufacturing, which plunged 28.1 percent.
The fall in Brazil’s industrial production influenced gross domestic product (GDP) in 2020, which the financial market forecasts will see a drop of 4.3 percent. The official result will be released in March.
Brazil is expected to see economic recovery of 3.5 percent growth in 2021, according to financial analysts.