In Services, the activities of Trade (0.2%), Transportation, storage and mailing (0.7%), Real estate activities (0.5%), Other services (0.6%) and Public administration, health and education (0.1%) registered positive results. On the other hand, Information services
(-1.2%) and Financial intermediation and insurance (-0.1%) declined.

Under the point of view of expenditure, Gross Fixed Capital Formation rose 0.6%. Household Consumption Expenditure (0.5%) also expanded. Conversely, Government Consumption Expenditure (-0.4%) retreated over the immediately previous quarter.

In the foreign sector, Exports of Goods and Services expanded 1.3%, whereas Imports of Goods and Services increased 2.5% in relation to the fourth quarter of 2017.

GDP increases 1.2% in Q1 2018 against Q1 2017

The GDP rose 1.2% compared with the first quarter of 2017. Agriculture dropped 2.6%. On the other hand, Industry grew 1.6% and Manufacturing Industry, 4.0%. Its result was influenced by the increase in the production of beverages, furniture, machinery and equipment, paper and pulp, basic metals, vehicles and computer equipment.

Having declined 2.2% in the quarter, Construction remains showing negative figures in relation to the same period a year ago. In the same direction, Mining and Quarrying fell 1.9%, pressed by both extraction of petroleum and natural gas, and ferrous ores. On its turn, the activity of Electricity and gas, water, sewage and urban sanitation rose 0.6%, favored by the maintenance of the green tariff flag in the first quarter of 2018.

The value added of Services increased 1.5% in this comparison, highlighted by the advance of 4.5% in Trade. Transportation, storage and mailing (2.8%), Financial intermediation and insurance (0.1%), Real estate activities (2.8%), Other services (0.9%) and Public administration, health and education (0.6%) also rose. Conversely, Information services retreated 3.3%, pressed by the decline in telecommunications.

Household Consumption Expenditure increases 2.8% in Q1

In the first quarter of 2018, Household Consumption Expenditure grew 2.8%, posting the fourth consecutive quarter of advance compared with the same quarter a year ago. The rise was due to the behavior of the indicators of credit for natural persons, as well as of inflation and interest rates lower than those recorded in the first quarter of 2017. 

Gross Fixed Capital Formation advanced 3.5% in the first quarter of 2018, the second positive figure after 14 declining quarters. Such increase was due to the rise in imports and production of capital goods, since construction maintained the negative performance. Government Consumption Expenditure, on its turn, retreated 0.8% in relation to the first quarter of 2017.

In the foreign sector, Exports of Goods and Services increased 6.0%, whereas Imports of Goods and Services expanded 7.7% in the first quarter of 2018.

Cumulative GDP in last four quarters is 1.3%

The cumulative GDP in the four quarters ending in March 2018 rose 1.3% in relation to the four immediately previous quarters.  This rate resulted from the advances of 1.1% in the Value Added at basic prices and 2.2% in the Product Taxes Net of Subsidies. The result of Value Added in this type of comparison reflected the performance of the following segments: Agriculture (6.1%), Industry (0.6%) and Services (1.0%).

Among the industrial activities, Manufacturing Industry (2.8%), Electricity and gas, water, sewage and urban sanitation (0.1%) and Mining and Quarrying (1.6%) rose. Construction retreated 3.9%.

Having advanced 3.4%, Trade stood out among Services. Transportation, storage and mailing (2.1%), Real estate activities (2.0%) and Other services (1.0%) also rose. On the other hand, Information services (-1.8%), Financial intermediation and insurance (-0.3%) and Public administration, health and education (-0.3%) declined.

Gross Fixed Capital Formation retreated 0.1% and Government Consumption Expenditure, 0.6%. Conversely, Household Consumption Expenditure expanded 2.1%. In the foreign sector, Exports of Goods and Services advanced 6.2%, whereas Imports of Goods and Services increased 4.6%.

GDP adds up to R$1,641.1 billion at current values

The Gross Domestic Product added up to R$1,641.1 billion in the first quarter of 2018, being R$1,400.6 billion relative to Value Added at basic prices and R$240.5 billion to Product Taxes Less Subsidies.

Investment rate was 16.0% in Q1

In the first quarter of 2018, the investment rate was 16.0% of the GDP, above that reported in the same period last year (15.5%). Also in the first quarter of 2018, the savings rate was 16.3% (against 15.8% in the same period in 2017).

In the first quarter of 2018, the National Gross Income hit R$1,617 billion against R$1,551.3 billion in the same period a year ago. On the same basis for comparison, Gross Savings reached R$266.8 billion against R$250.3 billion in the same period of 2017. 

Net Borrowing was R$20.3 billion against R$19.4 billion in the same period of 2017, a variation explained by the drop of R$10.7 billion in the external balance of goods and services and of R$9.6 billion in Net Property Income sent to the Rest of the World.