In the second quarter of 2008, GDP at current prices reached R$ 716.9 billion.

In the second quarter of 2008, GDP at current prices reached R$ 716.9 billion. In relation to the same quarter in the previous year, it grew by 6.1%, and, compared to the first semesters of 2008 and 2007, by 6.0%.

In the second quarter of 2008, GDP at market prices grew 1.6% compared to the immediately previous quarter (seasonally adjusted series). The main highlight was Agriculture, with growth of 3.8%,  followed by Services (1.3%) and Industry (0.9%).

In relation to the components of internal demand, in the second quarter this year, the highlight was the increase of 5.4% of Gross Formation of Fixed Capital, which had increased for eight consecutive months on this comparison basis. Household Consumption Expenditure increased 1.0%, followed by Government Consumption Expenditure (0.3%). In the external sector, Exports of Goods and Services increased 8.5% and Imports of Goods and Services, by 8.4%.

GDP grows 6.1% in relation to the same quarter in the previous year

GDP at market prices grew by 6.1% in the second quarter of 2008, compared to the same period in 2007. Value Added at basic prices increased by 5.7%. Excise Tax increased by 8.5%, with the performance of Goods and Services, which caused increase of the volume of Import Tax.

Among the sectors which contributed to the generation of Value Added, the highlight was Agriculture (7.1%), followed by Industry and by Services (5.5%), always in comparison with the same quarter of 2007.

The increase of Agriculture may be seen, to a great extent, as a consequence of the performance of some relevant products which had good harvests in the quarter. One example is coffee in grain, corn, rice in husk and soybeans, with estimates of production increased in 2008 of 27.7%, 12.8%, 9.6% and 3.6%, respectively.

In Industry, the highlight was Construction (9.9%), benefited by the increase (5.0%) of the population employed in this sector¹ and by the nominal increase of 26.7% of credit operations for the housing sector². Mining and quarrying industry grew 5.3%, mainly as a result of the production increase of gas and petroleum (5.1%) and iron ore (7.3%). Also important were manufacturing industry (4.8%) and Electricity and gas, water and sewage and urban sanitation (4.5%).

The Services sector grew by 5.5% compared to the same period in the previous year, with the main performance in this comparison since the second quarter of 2004 (5.9%). The main highlights were Financial mediation and insurance (12.7%); Information services (9.7%); Trade (retail and wholesale) with positive rate of 8.9%, followed by Transportation, storage and mailing services (4.4%) and Other services (4.0%). Other subsectors had the following results: Administration, health and public education (2.3%) and Real estate services and rents (1.9%). 

Among the components of internal demand, the highlight was the increase of 16.2% of Gross Formation of Fixed Capital. Household Consumption increased 6.7%, the nineteenth consecutive rate in this comparison. Government Consumption increased 5.3% in the second quarter of 2008, compared to the same period in 2007.

In terms of external demand, Exports of goods and services increased 5.1% in the period, after decrease in the previous quarter. Imports of goods and services (25.8%) had the nineteenth consecutive increase in this comparison, since the fourth quarter of 2003.

In the last four quarters, GDP accumulated 6.0% compared to the same period in 2007

In the second quarter of 2008, GDP at market prices accumulated in the last four quarters increased 6.0% in relation to the four immediately previous quarters. This rate resulted from the increase of Value Added at basic prices (5.4%) and of the increase of Excise Tax (9.2%).

The result of Value Added at basic prices in this type of comparison resulted from the positive performance of Agriculture (7.0%), Industry (5.5%) and Services (5.1%).  

Graph I.9 shows the rates accumulated in the last four quarters for GDP at market prices:

In the first semester, GDP grows by 6.0% compared to the same period in 2007

GDP at market prices in the first semester of 2008 grew 6.0% compared to the same period in 2007. In the same comparison basis, the sectors of Industry and Services grew 6.3% and 5.3%, respectively, and Agriculture, by 5.2%.

GDP reached R$ 716.9 billion in Q2 2008

In the second quarter of 2008, the Gross Domestic Product at market prices reached, R$ 716.9 billion, being R$ 608.5 billion relative to Value Added at basic prices and R$ 108.4 billion relative to Excise Tax.

Quarterly Economic Accounts

Considering quarterly results, Net Borrowing reached R$ 14.3 billion, versus Net Lending of R$ 0.6 billion in 2007. This increase can be seen as a consequence of the reduction of Foreign Balance of Goods and Services by R$ 10.1 billion, and of the rise of R$ 4.4 billion of Net Revenue of Property Sent to the Rest of the World.

Gross National Revenue reached R$ 698.5 billion in the second quarter of 2008, versus R$ 621.1 billion in the respective period of 2007. On this same comparison basis, Gross Revenue reached R$ 136.2 billion, versus R$ 121 billion in the same period in the previous year.

In terms of figures accumulated in the year, Net Borrowing reached R$ 35.3 billion, versus R$ 0.3 billion in the first semester of the previous year. This change resulted, mainly, from the decline of foreign balance by R$ 25.2 billion, and from the rise of R$ 9 billion of Net Revenue of Property Sent to the Rest of the World.

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

² According to the Press release entitled “Política Monetária e Operações de Crédito do Sistema Financeiro/ Financial Policies and Credit Operations of the Financial System” (BACEN).