The data released today by the IBGE showed that the Brazilian economy registered a historical drop of 4.1% in GDP in 2020. This result was already expected given the fragility of the Brazilian economy due to the Covid-19 pandemic and its consequences for economic activity. However, the 3.2% growth observed in the last quarter reveals that Brazil is on a recovery path.

For 2021, Firjan expects the economy to maintain this recovery path and to grow 3.3%. However, the speed at which the population is vaccinated and the progress in approving reforms are key parts in this recovery process. Without reforms, which unlock the productive sector and bring rationality to public spending, the country will not be able to sustain economic growth throughout 2021 and in the years to come.