GDP falls 0.3% in relation to Q4 2015

In the seasonally-adjusted series, the GDP changed -0.3% in the first quarter of 2016 against the last quarter of 2015. Agriculture changed 0,3% negatively, industry declined 1.2% and services registered a negative change of 0.2%.

In industry, the biggest drop was recorded in mining and quarrying (-1.1%). The manufacturing industry (-0.3%) posted a negative figure for the sixth quarter in a row. Construction fell 1.0% and the activity of electricity and gas, water, sewage and urban sanitation expanded 1.9%.

In services, trade (-1.0%), financial intermediation and insurance (-0.8%) and information services (-0.7%) reported the biggest drops in relation to the immediately previous quarter. Transportation, storage and mailing changed 0.4% negatively, whereas other services (0,1%), public administration, health and education (0.1%) and real estate activities (0.0%) remained virtually stable.

On the expenditure side, gross fixed capital formation (-2,7%) retreated for the tenth consecutive quarter in this basis for comparison (-2,7%). Household consumption expenditure (-1.7%) dropped for the fifth quarter in a row. Government consumption expenditure rose 1.1% over the fourth quarter of 2015.

In the foreign sector, exports of goods and services expanded 6.5%, whereas imports of goods and services declined 5.6%.

GDP falls 5.4% in relation to Q1 2015

When compared with the same period a year ago, the GDP retreated 5.4% in the first quarter of 2016 and recorded the eighth consecutive negative figure in this basis for comparison. The value added at basic prices decreased 4.6% and the product taxes less subsidies declined 10.4%.

Among the activities that contributed to the value added, agriculture dropped 3.7% in relation to the same period last year. This result could be mainly explained by the performance of some products with relevant harvest in the first quarter and by the productivity. According to the May edition of the LSPA/IBGE, some crops had their estimates of annual production decreased: tobacco leaves (-20.9%), paddy rice (-7.6%) and corn grain (-5.0%). On the other hand, the soybean crop pointed to a positive change of 1.3% in the annual production. Most of the important crops reduced their productivity in this quarter.

Industry declined 7.3%. In this context, the manufacturing industry dropped 10.5%, influenced by the declining production of machinery and equipment; of the car industry and other transportation equipment; of metal products; of fabricated metal products; of plastic and rubber products; of electric-electronic products and computer equipment; and of furniture.                                                                                                                                                                                                                                                                                                 Construction also reduced the volume of value added (-6.2%). Mining and quarrying fell 9.6% in relation to the first quarter of 2015, leveraged by the decreasing extraction of ferrous ores, petroleum and gas. The activity of electricity and gas, water, sewage and urban sanitation expanded 4.2%, influenced by the power down of thermoelectric plants in the third quarter of 2015 and in the first quarter of 2016.

The value added of services fell 3.7% over the same period last year, highlighted by the retraction of 10.7% in trade and of 7.4% in transportation, storage and mailing, pressed by the decreasing transportation and storage of cargo. Information services (-5.0%), other services (-3.4%), financial intermediation and insurance (-1.8%) and public administration, health and education (-0.8%) also dropped. Real estate activities posted no change.

All the components of the domestic demand registered negative figures for the fifth quarter in a row. Household consumption expenditure dropped 6.3% in the first quarter of 2016, which was explained by the deterioration of the inflation, interests, credit, employment and income indicators along this period. Gross fixed capital formation decreased 17.5%, the eighth drop in a row. This reduction mainly resulted from the fall of imports and of the domestic production of capital goods.

In the foreign sector, exports of goods and services expanded 13.0%, whereas imports of goods and services fell 21.7%, both of them influenced by the currency depreciation of 37% and by the performance of the economic activity registered in this period.

Cumulative GDPs in four quarters fall 4.7%

The cumulative GDP in the four quarters ending in March 2016 dropped 4.7% in relation to the four immediately previous quarters. The rate recorded in the first quarter of 2015 (-1,2%) was the first negative rate since the fourth quarter of 2009. In the second and third quarter of this year, the GDP returned to the negative side in this basis for comparison (-1.7% and -2,5%, respectively), dropping 3.8% at year end. The drop in the GDP accelerated in the first quarter of 2016, reaching a contraction of 4.7% at the end of this period, the biggest in the time series started in 1996.

This rate (4.7%) resulted from the contraction of 4.0% in the value added at basic prices and from the decline of 8.9% in the product taxes less subsidies. The result of the value added in this kind of comparison was due to the performances in agriculture (-1.0%), industry (-6.9%) and services (-3.2%).

Among the industrial activities, only electricity and gas, water, sewage and urban sanitation (1.4%) increased. The manufacturing industry retreated (-10.5%), followed by construction (-7.1%) and mining and quarrying (-0.5%).

Among services, only real estate activities (0.3%) changed positively. Trade dropped 10.0%, followed by transportation, storage and mailing (-7.3%), other services (-3.3%), information services (-2.4%) and financial intermediation and insurance (-0.4%). Public administration, health and education (-0.1%) remained virtually stable.

In terms of expenditure in this basis for comparison, gross fixed capital formation (-15.9%) and household consumption expenditure (-5.2%) registered their biggest drops in the time series started in 1996. Government consumption expenditure (-1,3%) also declined.

In the foreign sector, exports of goods and services rose 8.3%, while imports of goods and services dropped 18.3%.

GDP reaches R$1.474 trillion in Q1 2016

The Gross Domestic Product added up to R$1.47 trillion in the first quarter of 2016, being R$1.26 trillion relative to value added at basic prices and R$213.7 billion to product taxes less subsidies

In the first quarter of 2016, the investment rate was 16.9% of the GDP, below that reported in the same period last year (19.5%). Also in the first quarter of 2016, the savings rate was 14.3% (against 16.2% in the same period in 2015).