Brazil’s services sector plunged in 2020

Brazil’s services sector, measured by the volume index, contracted by 7.8% y/y in 2020, reflecting the negative impact of the COVID-19 pandemic. The largest drop occurred in services provided to families (-35.6% y/y), which include segments affected by the paralysation of tourism and non-essential businesses, such as hotels, restaurants, and beauty services.

The segment of professional, administrative, and complimentary services fell by 11.4% y/y, as the expansion of home office and online business activities reduced the demand for corporate services such as cleaning, architecture and engineering, and the organization of fairs and congresses.

The segment of miscellaneous services – which include stock exchanges and brokerages – recorded a positive performance in the year, the only one among the five surveyed segments, growing by 6.7% y/y in 2020.

Read the latest CEIC Leading Indicator analysis for Brazil - 'Vaccination delays hamper Brazil’s economic recovery'.