By Jeffrey T. Lewis
SAO PAULO--Brazil's economy entered a recession in the first quarter after many businesses had to shut down because of efforts to keep the coronavirus from spreading, according to the Brazilian Business Cycle Dating Committee, or Codace.
Numbers for gross domestic product for the full second quarter aren't yet available, but a look at figures that have been released suggest a steep decline in the period, said Paulo Picchetti, a researcher at the Getulio Vargas Foundation and a member of Codace. GDP contracted 1.5% in the first quarter from the fourth, according to Brazil's statistics agency.
"In terms of the initial hit, it's incomparable," he said. "It's worse than anything we've seen in the past 100 years."
Codace didn't calculate an estimate for the size of the contraction in the second quarter, which ends on Tuesday. But based on the information available, it's clear that there was a very deep and very diffuse contraction in the period, Mr. Picchetti said.
The service sector, which includes hairdressers and gyms, was particularly hard hit, as were some manufacturers of durable goods such as cars and household appliances, Mr. Picchetti said.
Brazil has been slammed by the coronavirus, and though some states and cities are allowing a gradual return to activity, social distancing measures were in full effect during April and much of May. President Jair Bolsonaro has pressured states and towns to allow businesses to reopen even as the number of infections and deaths continues to rise rapidly.
The country has reported 1.3 million confirmed infections and 57,622 deaths, the second-highest numbers in the world after the U.S.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
