INVESTMENT RATE (GFCF/GDP) in Q2 2016 = 16.8%
SAVINGS RATE (SAVING/GDP) in Q2 2016 = 15.8%

In the seasonally-adjusted series, the Gross Domestic Product (GDP) declined (-0.6%) in the comparison between the second quarter of 2016 and the first quarter of the year. Compared with the same period in 2015, the GDP also changed negatively (-3.8%). In the cumulative rate of the four quarters ending in the second quarter of 2016, the GDP decreased (-4.9%) in relation to the four immediately previous quarters, which was also registered in the cumulative figure of the first quarter (-4.6%) in relation to the same period in 2015. At current values, the GDP reached R$1.5 trillion in the second quarter of 2016. The complete publication is available atwww.ibge.gov.br/english/estatistica/indicadores/pib/defaultcnt.shtm.

Agriculture and services fall, industry rises compared with Q1 2016

In the seasonally-adjusted series, the GDP dropped 0.6% in the comparison between the second quarter and the first quarter of 2016. This was the sixth consecutive negative result in this basis for comparison. Agriculture retreated 2.0%, Industry changed 0.3% and Services declined 0.8%.

In Industry, Construction negatively changed 0.2%. Mining and quarrying and the activity of Electricity and gas, water, sewage and urban sanitation increased, respectively, 0.7% and 1.1%. Manufacturing industry (0.0%) remained stable in this quarter.

In Services, Transportation, storage and mailing (-2.1%), Other services (-1.7%), Financial intermediation and insurance (-1.1%), Trade (-0.8%) and Information services
 (-0.6%) dropped. Public administration, health and education (0.5%) changed positively and Real estate activities (0.1%) remained virtually stable in this quarter.

Under the point of view of expenditures, Gross Fixed Capital Formation registered the first positive figure after falling for ten consecutive quarters: 0.4%. Household Consumption Expenditure (-0.7%) dropped for the sixth quarter in a row. Government Consumption Expenditure declined 0.5% over the immediately previous quarter.

In the foreign sector, Exports of Goods and Services expanded 0.4%, whereas Imports of Goods and Services rose 4.5%.  

Compared with Q2 2015, agriculture, industry and services drop

When compared with the same period a year ago, the GDP retreated 3.8% in the second quarter of 2016 and recorded the ninth consecutive negative figure in this basis for comparison. The Value Added at basic prices declined 3.3% and the Product Taxes less Subsidies, 6.8%.

Among the activities that contributed to the Value Added, Agriculture dropped 3.1% in relation to the same period last year. This figure could be mainly explained by the performance of some products which had a relevant harvest in the second quarter and by their productivity, according to the Systematic Survey of Agricultural Production (LSPA/IBGE - July 2016), released in August.  Except for coffee, whose estimate of annual production rose 11.2%, the other crops harvested in this quarter registered a decrease in their annual production and productivity loss: corn (-20.5%), rice (-14.7%), cotton (-11.9%), beans (-9.1%) and soybeans (-0.9%).

Industry dropped 3.0%. In this context, Manufacturing Industry retreated 5.4%. Its result was influenced by the reduced production of machinery and equipment; car industry and other transportation equipment; basic metals; fabricated metal products; wearing apparel; products from petroleum refining and furniture.

Construction also reduced the volume of value added: -2.2%. Mining and quarrying dropped 4.9% in relation to the second quarter of 2015, mainly pressed by the reduced extraction of ferrous ores. The activity of Electricity and gas, water, sewage and urban sanitation, on its turn, expanded 7.9%, influenced by the power down of thermoelectric plants in the third quarter of 2015 and in the first and second quarters of 2016.

The value added of Services fell 3.3% over the same period last year, highlighted by the retraction of 7.4% in Trade (wholesale and retail) and of 6.5% in Transportation, storage and mailing, pressed by the decreasing transportation of cargo and passengers. The activities of Other services
(-4.2%), Information services (-3.7%), Financial intermediation and insurance
(-3.3%) and Public administration, health and education (-0,9%) also registered negative figures. Real estate activities positively changed 0.1%.

Household consumption expenditure drops (-5.0%) in Q2 2016

For the sixth quarter in a row, all the components of the domestic demand changed negatively when compared with the same period a year ago. Household Consumption Expenditure dropped 5.0% in the second quarter of 2016. This result could be explained by the worsening indicators of inflation, interests, credit, employment and income along the period.

Gross Fixed Capital Formation retreated 8.8% in the second quarter of 2016, registering the ninth consecutive drop. This reduction resulted mainly from the drop of the imports and of the domestic production of capital goods, also influenced by the negative performance of civil construction in this period.  Government Consumption Expenditure, on its turn, fell 2.2% over the second quarter of 2015.

In the foreign sector, Exports of Goods and Services expanded 4.3%, whereas Imports of Goods and Services fell 10.6%, both of them influenced by the currency depreciation of 14.3% and the performance of the economic activities registered in this period. Among the rising exports of goods, the highlights were motor vehicles, agriculture, basic metals, and pulp and paper. In terms of the imports of goods, the biggest drops were recorded in the steel industry, car industry, textiles, wearing apparel and footwear, electric-electronic products and petroleum.

GDP drops (-4.6%) in first semester of 2016

In the first semester of 2016, the GDP dropped 4.6% over the same period in 2015, following the negative change of 5.2% in the semester ending in December 2015. The negative performance of Industry (-5.2%) stood out in this basis for comparison.  Agriculture and Services dropped 3.4% and 3.5%, respectively.

Considering the biannual comparison, the drop of 13.3% in the Gross Fixed Capital Formation stood out from the perspective of internal demand. Household Consumption Expenditure fell 5.6%, while Government Consumption Expenditure declined 1.9%. In the foreign sector, Imports of Goods and Services dropped 16.2%, while Exports of Goods and Services rose 8.2%.

Investment rate reaches 16.8% of GDP in Q2 2016

The Gross Domestic Product added up to R$1,530.4 billion in the second quarter of 2016, being R#1,318.1 billion relative to Value Added at basic prices and R$212.3 billion to Product Taxes Less Subsidies .

In the second quarter of 2016, the investment rate was 16.8% of the GDP, below that reported in the same period last year (18.4%). Also in the second quarter of 2016, the savings rate was 15.8% (against 15.1% in the same period in 2015).