The Gross Domestic Product (GDP) of the second quarter of 2006 grew by 0.5% in comparison with the first semester of the year (seasonally adjusted series). In relation to the second quarter of 2005, there was 1.2%  growth. GDP accumulated in the sequence of four quarters ending in the first quarter of 2006 increased by 1.7% compared to the figure for the 4 immediately previous quarters. In the first quarter of 2006, there was increase of  2.2% in comparison with the same period in 2005.  

Among the sectors which form GDP, Agriculture had the best performance (0.8%) in the second quarter of 2006, compared to the first one. Services (0.6%) was in second place, whereas Industry fell by 0.3%.

In relation to the components of demand, the highlight was the 5.1% fall of Exports of Goods and Services, after 12 consecutive quarters of rising figures. It was the lowest result since the first quarter of 2003 (-8.2%). Imports of Goods and Services remained stable (-0.1%), after a 10.4% increase in the first quarter, in comparison with the fourth quarter of 2005. Considering the internal demand, the highlight was Family Consumption (1.2%), followed by Government Consumption (0.8%). On the other hand, the Gross Formation of Fixed Capital had a negative rate of 2.2% in the second quarter of this year, compared to the high base in the first quarter, when there was increase of 3.7% in relation to the fourth quarter of 2005.  

Services sector grows more when compared to Q2 2005

GDP grew by 1.2% in the second quarter of 2006, in comparison with the same period in 2005. Value Added at basic prices increased by 1.0%, and taxes on products, by 2.3%. This was a consequence of the performance of Imports of Goods and Services, which caused an increase in the volume of  Excise Tax. Among the sectors contributing to the formation of Value added, Services had the biggest increase (1.9%), followed by Agriculture (1.0%) and Industry (0.5%).

The result for Agriculture can be understood as a result of the harvesting movement of relevant products in the second quarter. According to the July edition of the Systematic Survey of Agricultural Production (LSPA-IBGE), the harvests of coffee (18.8%) and soybeans (2.9%) have grown in the year, whereas the opposite has happened to other products, such as cotton (-23.3%) and rice (-12.4%). Another important factor was the performance of Livestock: the production of poultry and milk fell in the second quarter.

With reference to Industry, the highlight was Construction (2.6%). Mining and Quarrying industry grew by 1.5%, and this rate was a rate inferior to the ones in the first quarter of 2006 and in the fourth quarter of 2005 (12.6% and 12.1%, respectively). This reduction may be seen as a consequence of the low growth rate of Extraction of petroleum and gas (0.8%), once the production of iron ore grew by 9.1%. Public utilities had 1.5% growth. Manufacturing Industry, 0.4% fall.

In the Services sector (1.9%), the main highlights were Other Services (2.9%), followed by trade (2.4%). For the other subsectors, the results were: rents (2.3%), public administration (2.0%), Financial Institutions (1.5%) and Transportation (0.8%). Communications fell by 3.0%, due to the decline of Fixed Telephony and by the stability of Mobile Telephony.

Among the components of internal demand, Family Consumption grew by 4.0% - it was the 11th consecutive increase in this type of comparison (Q2 2006/Q2 2005). Government Consumption, on the other hand, grew by 1.8%. Gross Formation of Fixed Capital grew by 2.9%, less than in the first quarter (9.0%).

Considering the External Sector, the Exports of Goods and services, which had presented positive rates since the fourth quarter of 2003, fell by 0.6% in relation to the second quarter of 2005. The Imports of Goods and Services remained on a rising trend (12.1%).

GDP accumulated in the four quarters ending in the second quarter of 2006 grew by 1.7% in relation to the four immediately previous quarters.

GDP in the year reaches 2.2%

In the first quarter of 2006, GDP grew by 2.2%, in comparison with the same period in 2005, with the following changes by sector: Industry (2.6%); Services (2.3%) and Agriculture (0.3%).

All the four subsectors of industry had positive rates, and the highlight was Mining and Quarrying Industry (6.7%). Construction and Public Utilities grew by 4.7% and 2.8%, respectively, and Manufacturing Industry, by 1.0%.

In the Services sector, the biggest increases were relative to Trade (3.6%) and Other Services (2.9%). There was similar growth of the subsectors: Rents (2.4%), Financial Institutions and Transportation (2.2%) and Public Administration (2.0%). Communications was the only subsector

in decline (-1.5%).