Retail sector growth hit five-year-high in 2018

published: Feb 14, 2019 07:30 PM, last modified: Feb 14, 2019 07:39 PM

2.3% increase last year was the biggest since 2013, according to data from IBGE

Retail sector growth hit five-year-high in 2018

Retails is consolidating its recovery after the recession - Credit: Archive/Agência Brasil

Retail sales continued their growth trajectory in the wake of the end of the recession last year. Growth in the sector reached 2.3% in 2018, the best result in five years. The data was released by the Brazilian Institute of Geography and Statistics on Wednesday (13).

Sectors of highlight in the year included personal items (+7.6%), pharmaceutical and medical items (+5.9%), hypermarkets, supermarkets and food products (+3.8%) and computer and communication equipment (slight increase of 0.1%).

The expanded retail sector (which also comprises the sales of the automotive sector) grew for the nineteenth time in a row, with a 5% increase in activity in the period. The result was chiefly driven by sale of automobiles and motorcycles, which climbed by a significant 15.1%.

The sector's recovery comes in the wake of the resurgence of the Brazilian economy, which now enjoys curbed inflation and the SELIC benchmark interest rate at historic lows following a long recession.