The GDP at market prices changed by 4.3% in the first quarter of 2007, in relation to the same period in 2006. Value Added at basic prices increased by 3.9% and Excise Tax, by 6.9%.

The GDP at market prices changed by 4.3% in the first quarter of 2007, in relation to the same period in 2006. Value Added at basic prices increased by 3.9% and Excise Tax, by 6.9%. Considering the rate accumulated in four semesters ending in the first quarter of 2007, the increase was 3.8%.

The Gross Domestic Product (GDP) at market prices for the first quarter of 2007 reached R$ 596,2 billion, being R$ 511,1 billion relative to Value Added at market prices and R$ 85,1 billion relative to Excise Tax. The GDP change rose 0.8% in comparison with the first quarter of 2006, considering a seasonally adjusted series. Still in this comparison, the main highlight was the Services sector, with increase of 1.7%. Industry was stable (0.3%) and Agriculture fell by 2.4%.

In comparison with the immediately previous quarter, the highlight in terms of internal demand is the increase of Government Consumption by 3.5% in the first quarter of 2007, after fall of 0.2% in the previous quarter. The Gross Formation of Fixed Capital increased 2.1%, being followed by Household Consumption, with 0.9%. In terms of external demand, the Exports of Goods and Services increased by 1.2%. On the other hand, the Imports of Goods and Services increased at a higher rhythm (4.1%), and had its fourteenth consecutive increase in this type of comparison.

Quarterly rate in relation to the equivalent quarter in the previous year

The GDP at market prices grew by 4.3% in the first quarter of 2007, in relation to the same period in 2006. Value Added at basic prices increased by 3.9% and Excise Tax, by 6.9%. Among the sectors which contributed to the generation of Value Added, the highlight was Services, with positive rate of 4.6%, followed by Industry, with 3.0% and Agriculture, with 2.1%.

The rate for Agriculture can be explained, to a great extent, by the performance of products which had relevant harvest in the quarter. According to the Systematic Survey of Agricultural Production (LASP – IBGE) of April/2007, the production of cotton, corn, potatoes and soybeans had increase estimates in the year of 30%, 21%, 10% and 9%, respectively. Another important sector was the positive performance of bovines, the most important product in the livestock sector.

In the industrial activity, the highlight was Mining and Quarrying Industry, which had a growth rate of 4.1% and was benefited by the increase by 2.6% of the petroleum and gas production and the increase by 7.9% of iron ore. Other results came from Electricity and gas, water, sewage and urban sanitation, with 3.9% of increase; Manufacturing Industry grew by 2.8% and Construction Industry, by 2.4%.

The Services sector grew by 4.6% in comparison with the same period in the previous year, accounting for the biggest quarterly performance in the quarterly comparison since the fourth quarter of 2004 (5.1%). The main highlights came from Financial Mediation and Insurance (9.2%); Information Services (7.3%); Trade (retail and wholesale), with positive rate of 6.0%, followed by Real Estate Services and Rents (4.2%). Other subsectors had the following results: Other Services (3.7%); Transportation, Storage and Mailing Services (3.5%) and Administration, Health and Public Education (2.1%).

Gross Formation of Fixed Capital increased by 7.2%

Among the components of internal demand, Household Consumption reached the positive rate of 6.0%, the tenth consecutive increase in this quarterly comparison, in relation to the same quarter in the previous year. Government Consumption increased by 4.0% in the first quarter of 2007, compared to the same period in 2006. The Gross Formation of Fixed Capital increased by 7.2%; it was, mainly, a consequence of the increase of production and importation of machinery and equipment.

Concerning external demand, Exports of Goods and Services remained on a growing trend with rate of 5.9% in the period. Imports of Goods and Services had the fourteenth consecutive increase in this type of comparison once more, about 19.9%. It is worth mentioning that since the first quarter of 2006, the increase of Imports of Goods and Services has surpassed that of Exports of Goods and Services in this type of comparison.

Rate accumulated in the last four quarters (in relation to the equivalent period in the previous year)

The GDP at market prices accumulated in the four quarters which ended in the first quarter of 2007 grew by 3.8% in relation to the four immediately previous quarters. This rate resulted from the rise of 3.5% of Value Added at basic prices and of the increase of 5.6% in Excise Tax. The result of Value Added in this type of comparison was a consequence of the positive performance of the three sectors which form it: Agriculture (5.5%), Services (3.8%) and Industry (2.3%).

In the analysis of demand, Household Consumption increased by 4.8%, being favored by the increase of the real salary mass of workers¹, and by the increase, in nominal terms, of the balance of credit operations of the financial system with free resources for physical persons, as previously mentioned.  

Gross Formation of fixed Capital increased by 7.7%; it was the twelfth consecutive increase. Factors accounting for this increment were he performance of Construction, which has been recovering since the third quarter of 2004 in this type of comparison and the increase of imports of machinery and equipment. Finally, Government Consumption reached 3.4%.

With reference to the external sector, Exports of Goods and Services increased by 4.2% and Imports of Goods and Services increased by 19.1%.

Current Values and Quarterly Economic Account

The Gross Domestic Product measured at market prices, in the first quarter of 2007, reached R$ 596,2 billion, of which R$ 511,1 billion were relative to Value Added at basic prices and R$ 85,1 billion relative to Excise Tax.

Considering the Value Added of the activity sectors in 2006, Agriculture held R$ 28,7 billion, Industry R$ 147,6 billion and Services, R$ 334,7 billion. Among the component of demand, Household Consumption totaled R$ 368,2 billion, Government Consumption, R$ 114,3 billion and Gross Formation of Fixed Capital, R$ 102,6 billion. The Balance of Good and Services had a R$ 10,6 billion surplus and the Stocks Change was positive: R$ 0.8 billion. 

In the result of the quarter, Net Lending reached R$ 0,9 billion versus R$ 1,5 billion in 2006. This reduction can be explained, mainly, by the decrease of the Foreign Balance of Goods and Services in the amount of R$ 3,8 billion and R$ 3,1 billion in Net Income Properties Sent to the Rest of the World.

Gross National Revenue reached R$ 584,4 billion in the first quarter of 2007, versus R$ 524,3 billion in the equivalent period in 2006. In the same type of comparison, Gross Savings reached R$ 104,0 billion versus R$ 88,6 billion in the same period in the previous year.

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¹ According to the Monthly Employment Survey (PME/IBGE)