INVESTMENT RATE (GFCF/GDP) 2016 = 16.4%
SAVINGS RATE (SAV/GDP) 2016 = 13.9%

In 2016, the GDP fell 3.6% in relation to the previous year, slightly lower than the 2015 result, when it had been 3.8%. There were drops in Agriculture (-6.6%), Industry (-3.8%) and Services (-2.7%). The GDP totaled R$ 6,266.9 billion in 2016.

The GPD fell 0.9% in the 4th quarter of 2016 against the 3rd quarter, considering the seasonally adjusted series. It is the eighth consecutive negative result in this kind of comparison. Agriculture grew 1.0%, whereas Industry (-0.7%) and Services (-0.8%) fell.

In the comparison with the 4th quarter of 2015, the GDP shrank 2.5% in the last quarter of 2016, the 11th negative consecutive result in this comparison. There were drops in Agriculture (-5.0%), Industry (-2.4%) and Services (-2.4%).

The complete publication of the survey can be accessed here.

Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais

GDP falls 0.9% in relation to Q3 2016

The 0.9% drop in the 4th quarter of 2016 results from the following performances: agriculture (1.0%), industry (-0.7%) and services (-0.8%). In Industry, Mining and quarrying grew 0.7%. Manufacturing industry (-1.0%) and construction (-2.3%) recorded decrease. The activity of Electricity and gas, water supply, sewerage and urban sanitation registered negative change of 0.1% in the quarter.

In services, all activities had negative results, especially information services (-2.1%) and transportation, storage and mail (-2.0%), followed by trade (-1.2%), other services (-0.9%), financial intermediation and insurance (-0.7%), public administration, health and education (-0.6%) and real estate activities (-0.2%).

From the perspective of expenses, household consumption (-0.6%) fell from the eighth quarter in a row, and the gross fixed capital formation (GFCF) kept negative (-1.6%). Government consumption expenditure (0.1%) remained virtually steady in relation to the previous quarter.

GDP declines 2.5% in relation to Q4 of 2015

With the 2.5% drop against the 4th quarter of 2015, the value added at basic prices decreased 2.3% and the product taxes less subsidies, 3.3%.

Agriculture shrank 5.0% in relation to the same period of the previous year. The industry had a 2.4% drop, with the manufacturing industry also shrinking 2.4% and construction falling 7.5%. In the mining and quarrying industries, there was expansion of 4.0% in relation to the fourth quarter of 2015, mainly pushed by the growth of oil and natural gas extraction. The activity of Electricity and gas, water supply, sewerage and urban sanitation expanded 2.4%.

The value added of services fell 2.4% over the same period last year, highlighted by the contraction of 7.5% of transportation, storage and mail and of 3.5% of trade (wholesale and retail). Negative results were also seen in the activities of financial intermediation and insurance (-3.4%), information services (-3.0%), other services (-2.6%) and Public administration, health and education (-0.7%). Real estate activities (0.1%) were practically stable in the period.

For the seventh month in a row, all the components of the domestic demand had decrease, and the household consumption (-2.9%) recorded the eighth consecutive drop. This result could be explained by the behavior of the indicators of credit, employment and income along the period.

The Gross Fixed Capital Formation declined 5.4%, the 11th consecutive drop. This decline resulted mainly from the fall of imports and of the domestic production of capital goods, as well as from the negative performance of civil construction in the period. Government consumption expenditure changed negatively by 0.1% in relation to the fourth quarter of 2015.

GDP down 3.6% in 2016

In 2016, the GDP declined 3.6% in relation to 2015. This drop resulted from the 3.1% contraction of the value added at basic prices and of the 6.4% drop in the product taxes less subsidies. The result of the value added in this type of comparison reflected the performance of the three activities within it: agriculture (-6.6%), industry (-3.8%) and services (-2.7%).

The GDP per capita had decrease of 4.4% in real terms, reaching R$30,407. The GDP per capita is defined as the division of the current value of the GDP by the resident population in the middle of the year.

The decrease of agriculture in 2016 (-6.6%) came from the performance of agriculture, mainly. In industry, the positive highlight was the activity of electricity and gas, water supply, sewerage and urban sanitation, which grew 4.7% in relation to 2015. The manufacturing industry faced a 5.2% decrease in the year. Construction shrank 5.2%, whereas mining and quarrying posted a cumulative drop of 2.9%, influenced by the decreased extraction of ferrous ores.

Among the activities in services, transportation, storage and mail decreased 7.1%, followed by trade (-6.3%), other services (-3.1%), information services (-3.0%) and financial intermediation and insurance (-2.8%). Real estate activities changed positively 0.2%, whereas public administration, health and education (-0.1%) were virtually stable in relation to the previous year.

In the expenditure approach, by the third year in a row there was contraction of the FBCF (-10,2%). This reduction resulted mainly from the fall of the domestic production and of imports of capital goods, also influenced by the negative performance of construction. Household consumption expenditure fell 4.2% in relation to the previous year (when it fell 3.9%), explained by the deterioration of the interest, credit, employment and income indicators along the whole year of 2016. Government consumption expenditure, on its turn, dropped 0.6%, over the 1.1% decrease in 2015.

In the foreign sector, the exports of goods and services increased 1.9%, whereas the imports of goods and services fell 10.3%.

GDP reaches R$6.3 trillion in 2016

The Gross Domestic Product in 2016 totaled R$ 6,266.9 billion. The investment rate of 2016 was 16.4% of the GDP, below that of the previous year (18.1%). The savings rate was 13.9% in 2016 (against 14.4% last year).