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LatinNews Daily - 14 September 2020

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In brief: Services sector recovers slowly in Brazil

* Brazil’s national statistics institute (Ibge) has released the latest figures for the services sector, which is recovering slowly from a 19.8% drop in February-May this year, primarily due to the impact of the coronavirus (Covid-19) pandemic. Activity in the services sector grew 2.6% month-on-month in July, but contracted 11.9% year-on-year and has overall shrunk 8.9% in the first seven months of 2020. The manager of Ibge’s services sector survey, Rodrigo Lobo, explained that the services sector is recovering more slowly than the country’s industrial and retail sectors, due to the heterogeneous nature of the services sector, and the fact that it makes up 70% of the economy. Lobo added that activities which require in-person service are struggling the most to recover, while the information technology sector is “the most dynamic and resilient”