GDP grew 2.7% in relation to the fourth quarter of 2009 and industry experienced the highest growth (4.2%)

GDP at market prices grew 2.7% in relation to the fourth quarter of 2009, in the seasonally adjusted series. The largest rise occurred in Industry (4.2%), followed by Agriculture (2.7%) and Services (1.9%). In relation to the components of domestic demand, the main highlight was the 7.4% growth of GFFC in the first quarter of this year. Household Consumption Expenses increased by 1.5% and Government Consumption Expenses, by 0.9%. In the foreign sector, both Exports of Goods and Services and Imports of Goods and Services increased: 1.7% and 13.1%, respectively.

GDP grew 9.0% in relation to the same quarter of 2009 and industry had the best performance (14.6%)

GDP at market prices grew 9.0 in relation to the same period of 2009. Value Added at basic prices grew 8.0%. Excise tax increased 14.9% due to, principally, the rise in Industry, especially Manufacturing Industry, and the increased volume of Imports of Goods and Services.

Industry recorded the best performance (14.6%), followed by Services (5.9%), always in relation to the first quarter of 2009. The volume of value added of Agriculture grew 5.1%, after four consecutive quarters of decrease in this basis for comparison.

In Agriculture, important were growth estimates in the production of soy, cotton and corn (19.2%, 6.5% and 4.0%, respectively) for 2010 and that have relevant harvest in the quarter, according to the Systematic Survey of Agricultural Production released in May. Silviculture and forest exploitation also had good performance in the quarter. On the other hand, rice and tobacco, with significant harvests in the period, have estimates of decrease for 2010, of 9.7% and 8.9%, respectively.

In the industrial activity, the highlight was the 17.2% growth of value added of Manufacturing Industry, influenced by the increased production of machinery and equipment; household appliances; automotive industry, including pieces and accessories; metallurgy/ironworks; textile industry; chemical products and rubber and plastic items. Civil Construction grew 14.9%, benefitted by the increased credit operations for housing and the increased occupation of the sector. Mining and quarrying industry grew 13.6%, principally because of the 52% increase in iron ore production. The value added of Electricity and gas, water, sewage and urban cleaning increased 8.1%, principally because of the industrial consumption of electricity.

The value added of the Services sector increased 5.9% in relation to the same period of the previous year. Increases were: Trade – wholesale and retail (15.2%), Transport, Storage and Mail (12.4%), Financial Mediation and Insurance (9.0%), Information Services (2.6%), Other Services (2.4%), Administration, Health and Public Education (2.3%)Real Estate Services and Rent (1.8%).

Gross Formation of Fixed Capital, Civil Construction and Imports have the largest rises in the whole series

 Among the components of domestic demand, still in relation to the first quarter of 2009, Household Consumption Expenses grew 9.3%, being the 26^th consecutive growth in this comparison, returning to the same growth level as the third quarter of 2008. Government Consumption Expenses grew 2.0% in relation to the same period of 2009. GFFC had the highest growth (26.0%) in the series, initiated in 1995¹, mainly with the increase of domestic production of machinery and equipment. In that quarter there was also the largest increase in Civil Construction (14.9%) since the beginning of the series (1995), what also contributed to the performance of GFFC.

Considering the foreign demand, Exports of Goods and Services grew 14.5% in relation to the same quarter of the previous year. Imports of Goods and Services grew 39.5%, the highest growth of the whole series in this basis for comparison. Import products that most contributed to this result were: electronic material, wood and furniture, electric material; ironworks, other refining products, automotive vehicles and diverse chemical products.

In the accumulated in four months, GDP grew by 2.4%

The GDP at market prices accumulated in the last four quarters grew 2.4% in relation to the immediately previous four quarters. This rate resulted from the 2.3% increase in Value Added at basic prices and from the 3.6% increase of Excise Tax.

The result of Value Added in this kind of comparison was due to the positive performance of Services (3.6%), to the stability of Industry (0.0%) and to the decline of Agriculture (-3.3%).

In the analysis of demand, Household Consumption Expenses increased 6.0%, favored by the increased real salary volume and by the nominal increase of credit transaction balance of the financial system with free resources for natural persons. Government Consumption Expenses grew 3.1%. GFFC declined 1.5%, a decrease inferior to those of the last three quarters. In the foreign sector, Exports of Good and Services decreased 4.2% and Imports of Good and Services changed -0.4%. These rates are still affected by decreases in the second and third quarters of 2009.

GDP reaches R$ 826.4 billion in the first quarter of 2010

Growth of 2.7% was related to the fourth quarter of 2009. In this comparison, the largest rise was observed in Industry (4.2%), followed by Agriculture (2.7%) and Services (1.9%). The Investment Rate in this period went up to 18.0%, and the Gross Savings Rate reached 15.8%.

In relation to the first quarter of 2009, the Gross Domestic Product (GDP) grew 9.0%, and the largest rise was recorded in Industry (14.6%), followed by Services (5.9%) and Agriculture (5.1%). Still in this comparison, the Gross Formation of Fixed Capital (GFFC) (26.0%), Civil Construction (14.9%) and Exports of Goods and Services (39.5%) had the largest rises since the beginning of the series in 1995.

In the accumulated in the last four quarters, the GDP grew 2.4%, with rise in Services (3.6%), stability in Industry (0.0%) and fall in Agriculture (-3.3%).

Investment rate went up to 18.0% and Gross Savings reached 15.8%

The investment rate in the first quarter of 2010 was 18.0% of GDP, superior to that of the same period of the previous year (16.3%). This increase was due principally to the increased GFFC rate in the quarter (26.0%), the highest of the series initiated in 1995. The savings rate reached 15.8% of GDP.

In the quarter, Net Borrowing reached R$ 25.0 billion against R$ 14.2 billion in 2009, principally for the reduction of R$ 9.9 billion of external balance of goods and services, followed by the decrease of R$ 0.6 billion of other net current transfers received from abroad. The Gross National Income reached R$ 813.2 billion in the first quarter of 2010 against R$ 704.2 billion in the respective period of 2009. Gross Savings reached R$ 130.7 billion against R$ 102.5 billion in the same period of the previous year.

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¹The chained series of volume indexes initiated in the first quarter of 1995.