The Gross Domestic Product (GDP) fell by 0.8% in the third quarter of 2016 in comparison with the Q2 figure (seasonally-adjusted series). It is the seventh decrease in this type of comparison. Versus the same period in 2015, there was decrease of GDP (-2.9%) for the 10th consecutive time. Considering the cumulative result of the four quarters ending in Q3 2016, there was decrease of GDP (4.4%) versus the four previosu quarters, the seventh negative result in a row. Regarding the cumulative result up to September, GDP recorded a decrease of 4.0% in relation to the same period in 2015, the biggest decrease for this period since the beginning of the series, in 1996.

In current figures, GDP in Q3 2016 reached R$ 1,580 trillion, being R$ 1,371 trillion relative to Value Added at basic prices and R$ 209.3 billion to Product Taxes Less Subsidies.

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In relation to Q2, GDP fell by 0.8%

GDP decreased 0.8% in the comparison between th third and second quarters of 2016, considering the seasonally adjusted series. It is the seventh negative result in a row in this type of comparison. Agriculture (-1.4%), industry (-1.3%) and services (-0.6%) recorded decrease.

In industry, there was increase of 3.8% in mining and quarrying industry, due to the contribution of petroleum and natural gas. Manufacturing industry (-2.1%) and construction (-1.7%) recorded decrease. The activity electricity and gas, water, sewage and urban sanitation recorded a negative change of 0.2% in the quarter.

In services, transportation, storage and mailing (-2.6%), other services (-1.0%), financial intermediation and insurance (-0.6%) and trade (-0.5%) recorded decreases. Administration, health and public education ção, saúde e (-0.1%) and real estate activities (0.0%) remained practically stable in the quarter. The activity information services (0.5%) changed positively.

From the perspective of demand, gross fixed capital formation fell once more (-3.1%), after recording increase of 0.5% in the previous quarter. Household consumption (-0.6%) fell for the second month in a row and government consumption, by 0.3%. Regarding the foreign sector, exports decreased 2.8%, and imports, by 3.1% in relation to the second quarter of 2016.

GDP fell by 2.9% in relation to Q3 2015

Versus the same period a year before, GDP recorded a change of 2.9% in Q3 2016, the 10th consecutive negative result on this comparison basis. Value added at basic prices fell by 2.5% and product taxes net of subsidies fell by 4.8%.

Among the categories, agriculture recorded a decrease of 6.0% in relation to the same period in the previous year. Some crops recorded decrease in the anual production and loss of productivity, such as milk (-25.5%), cotton (-16.9%), orange (-4.7%) and sugarcane (-2.0%). Coffee (11.0%) and cassava(3.8%), the harvests of which are also significant in this quarter, recorded increase of production.

Industry recorded decrease of 2.9%. In this contexto, manufacturing industry recorded decrease of 3.5%, a result affected by the decrease of machinery and equipment; of the car industry and other transportation equipment; metal products; wearing apparel; pharmaceutical products; furniture and computer equipment.

Construction also recorded Areduction in value added (-4.9%). Mining and quarrying industry decreased 1.3% in relation to Q3 2015, mainly due to the reduced extraction of iron ore. The activity of electricity and gas, water, sewage and urban recorded increase of 4.3%, influenced by the base-effect coming from the turning off of termal electric plants in Q3 2015 and in 1st a nd 2nd quarters of 2016.

Services fell by 2.2% in comparison with the same period in the previous year, the main highlights being the decrease of 7.4% in transportation, storage and mailing and 4.4% in trade (retail and wholesale). Negative results were also observed in financial intermediation and insurance (-3.3%), other services (-2.5%) and information services (-1.5%). Administration, health and public education (0.1%) and real estate activities (0.1%) remained practically stable in the period.

For the sixth quarter in a roll, all the componentes of demand recorded a negative result in comparison with the same period in the previous year and household consumption fell by 3.4%. This result can be explained by the behavior of inflation indicators, interest, crfedit, employment and income throughout the period.

Gross fixed capital formation decreased by 8.4% in Q3 2016, its 10th decline in a row. This result is related to the reduction of imports and the internal production of capital goods, being also influenced by the negative performance of construction. Government consumption fell by 0.8% in relation to Q3 2015.

In the foreign sector, exports changed 0.2% (after having increased 4.0% in the previous quarter), whereas imports fell 6.8% in Q3 2016, both affected by the rise of the interest rate by 8.5% and by the economic activity recorded in the period.

DAmong the exports, the biggest decreases occurred in agriculture, steel industry and mining and quarrying industry. Among the imports, can be mentioned machinery and equipment, car industry, rubber, plastic, electronic appliances, clothig and footwear production.

From January to September, GDP recorded cumulative decrease of 4.0%

Cumulative GDP in the year until Q3 2016 fell by 4.0% in relation to the same period in 2015. It is the biggest cumulative decrease for a period of January-September since the beginning of the time series, in 1996. On this basis for comparison, agriculture (-6.9%), industry (-4.3%) and services (-2.8%) recorded decrease.

The analysis of domestic demand points to a decrease of 11.6% in gross formation of fixed capital. Household consumption (-4.7%) and government consumption (-0.7%) also recorded cumulative decrease in the year. In na analysis of the foreign sector, imports fell by 13.1%, whereas exports increased by 5.2%.

Cumulative GDP in four quarters falls by 4.4%

Cumulative GDP of the four quarters ending in September 2016 decreased by 4.4% in comparison with the four previous quarters. This rate came from the 3.8% decline of value added at basic prices and the decrease of 8.3% in product taxes net of subsidies. The result of value added in this type of comparison resulted from decreases in agriculture (-5.6%), industry (-5.4%) and services (-3.2%).

From the perspective of expenditure, all the componentes of internal demand recorded negative results for the sixth quarter in a row. Gross fixed capital formation recorded a decrease of 13.5%. Household expenditure (-5.2%) and government consumption (-0.9%) also recorded decrease.

Regarding foreign demand, exports incresed 6.8%, whereas exports fell by 14.8%.

GDP in Q3 2016 hits R$ 1.6 trillion

GDP in Q3 2016 amounted to R$ 1,580 trillion, being R$ 1,371 trillion reative to value added at basic prices and R$ 209.3 billion to product taxes net of subsidies.

The investment rate in Q3 2016 was 16.5% of the PIB, below the figre observed in the same period of 2015 (18.2%). The savings rate was 15.1% in Q3 2016 (versus 15.3% in the same period of 2015).

Revision of Quarterly Accounts Series

The Quarterly National Accounts released in the third quarter of every year bring a more comprehensive revision which incorporates the new weighting of Annual National Accounts of the two preceding years.