GDP at market prices grew by 5.8% in the first quarter of 2008, compared to the same period in 2007.

GDP at market prices grew by 5.8% in the first quarter of 2008, compared to the same period in 2007. Value added at basic prices increased by 5.5% and Excise tax changed by 8.0%. Considering the rate accumulated in four quarters and ending in the first quarter of 2008, there was increase of 5.8%. 

The Gross Domestic Product (GDP) at market prices increased by 0.7% compared to the first quarter of 2008 versus the fourth quarter of 2007, considering the seasonally adjusted series. The highlights were the sectors of Industry, with increase of 1.6% and Services, with increase of 1.0%. Agriculture fell by 3.5%. 

Also in comparison with the immediately previous quarter, the increase of Government Consumption Expenditure was 4.5% in the first quarter of this year, after negative change of 0.2% in the previous quarter. Gross Formation of Fixed Capital increased by 1.3%, followed by Household Consumption Expenditure, with 0.3%. In terms of external demand, the Exports of Goods and Services decreased by 5.7%. On the other hand, Imports of Goods and Services increased by 0.8%, with the tenth consecutive increase on this comparison basis.

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

GDP at market prices grew by 5.8% in the first quarter of 2008, in relation to the same period in 2007. Value Added at basic prices increased by 5.5% and Excise tax, by 8.0%. Among the sectors which contributed to the generation of value added, industry had the best performance, with positive rate of 6.9%; it was followed by Services, with increase of 5.0% and Agriculture, with positive change of 2.4% comparison to the same quarter in 2007.

The rate of Agriculture may be seen as a result of the performance of some products which had significant harvests in the quarter, according to the Systematic Survey of Agricultural Production (LSPA-IBGE) of May. According to the survey, corn, rice and soybeans, for example, had estimates for production increase of 11.4%, 8.6% and 2.6%, respectively, in 2008. On the other hand, herbaceous cotton and tobacco had estimates for production decrease, by 3.7% and 1.9%, respectively. 

Considering industry, the highlight was Construction, with increase rate of 8.8%, the highest rate since the second quarter of 2004 (10.6%). In second place were Manufacturing industry, with 7.3% of increase, Electricity, gas, water and sewage, with 5.5% and Mining and quarrying industry, with 3.3%.

The sector of Services grew by 5.0% in comparison with the same period in the previous year. The main highlights were Financial Mediation and Insurance (15.2%); Information Services (9.5%) and Trade (retail and wholesale) with positive rate of 7.7%. Other subsectors had the following performances: Transportation, storage and mailing services (3.7%); Other services (2.6%); Real estate and rents (2.1%) and Administration, health and public education (1.1%).

Household consumption increases again for the 18^th consecutive time

Among the components of internal demand, Household consumption expenditure reached the positive rate of 6.6%, the eighteenth consecutive increase in the quarterly rate in relation to the same quarter in the previous year, favored by the rise of salary mass of workers and by the increase, in nominal terms, of the balance of operations of credit of the financial system with free resources for physical persons. Government Consumption Expenditure increased by 5.8% in the first quarter of 2008 versus the same period in 2007. Gross formation of fixed capital increased by 15.2%, probably as a consequence of the increase of production and of the imports of machinery and equipment. Also in this quarter, the accelerated increase of Construction was the highlight, contributing to the positive performance of Gross Formation of Fixed Capital.

Considering external demand, Exports of Goods and Services, which had had positive rates since the third quarter of 2006, had increase of 2.1% in relation to the same quarter in the previous year. Imports of Goods and Services also presented increase in this comparison, of about 18.9%, the eighteenth consecutive increase since the fourth quarter of 2003.

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

GDP at market prices accumulated in the last quarters and ending in the first quarter of 2008 increased by 5.8% in relation to the four immediately previous quarters. This rate resulted from the increase of 5.2% of Value Added at basic prices and of the increase of 9.4% of Excise tax. The result of value added in this type resulted from the positive performance of the three sectors which form it: Industry 95.7%), Agriculture and Services (4.9%).

Among the subsectors of industry, the highest rates were those of Construction, with 6.5% and Manufacturing industry, with 6.0%. Electricity, gas and water, sewage and urban cleaning and mining and quarrying industry had the respective increases: 5.4% and 2.8%. The biggest increases were those of the subsectors of Financial mediation and insurance; information services and trade (14.5%, 8.5% and 7.9%, respectively).

In the analysis by demand, Household Consumption Expenditure increased by 6.7%. Gross formation of fixed capital rose by 14.9%, with its sixteenth consecutive increase. One of the factors which make this increase possible was Construction, which has recovered since the third quarter of 2004, on this comparison basis, and the increase of imports of machinery and equipment, favored by the increase of value of the Brazilian currency (Real) compared to the dollar. Finally, Government Consumption Expenditure reached 3%.

In terms of the external sector, the Exports of goods and services increased by 4.6% and the imports of goods and services increased by 20.4%.

Current values and quarterly economic accounts

The Gross Domestic Product at market prices of the first quarter of 2008 reached R$ 665.5 billion, being R$ 560.7 relative to Value Added at basic prices and R$ 104.8 billion to Excise tax.

In the result of the quarter, Net Borrowing reached R$ 21 billion, versus R$ 0.9 billion in 2007; this reduction can be seen, above all, as resulting from the reduction of the Foreign Balance of Goods and Services by R$ 15 billion, and the increase of R$ 4.6 billion of Net Revenue of Property Sent to the Rest of the World.

Gross National Revenue reached R$ 647.3 billion in the first quarter of 2008, versus R$ 585.2 billion in the respective period of 2007. On this same comparison basis, Gross Revenue reached R$ 111.8 billion versus R$ 102.8 billion in the same period in the previous year.