The value of the GDP at market prices, for the year 2004 reached R$ 1.8 trillion, being R$ 1.6 trillion referent to the Value Added at basic prices and R$ 185.1 billions relative to Taxes on Products

The value of the GDP at market prices, for the year 2004 reached R$ 1.8 trillion, being R$ 1.6 trillion referent to the Value Added at basic prices and R$ 185.1 billions relative to Taxes on Products. In the fourth quarter of 2004, the value of the GDP was R$ 479.3 billions, being R$ 430.1 billions of Value Added at basic prices and R$ 49.3 billions of Taxes on Products.

Considering the Value Added in the activity sectors, in 2004, Agriculture recorded R$ 159.7 billions, Industry R$ 616.0 billions and Services R$ 881.6 billions. Among the components of demand, the Family Consumption totaled R$ 978.0 billions, the Government Consumption R$ 332.3 billions and the Gross Fixed Capital Formation R$ 346.2 billions. The Balance of Goods and Services remained with surplus of R$ 82.5 billions and the Variation of Inventories was R$ 30.2 billions.

In 2004, the resident population in the country was 181,586 thousand inhabitants. The GDP per capita reached R$ 9,743 in current values. The Implicit Deflator of the GDP – average change of the prices in the current year in relation to the average of the prices of the previous year - in 2004, was 8.1%.

GDP, GDP per Capita, Resident Population and Implicit Deflator – 1999/2004

The participation of Services falls and the participation of Agriculture and Industry increases

In relation to the participation of each activity sector in the Value Added at basic prices, Agriculture and Industry recorded, in 2004, small positive changes in relation to 2003, reaching, respectively, 10.1% and 38.9%. The sector of Services obtained 55.7% of participation, i.e., 5.2 percentage points lower than 1999 (60.9%). Considering the components of demand, the Family Consumption registered 55.3% of participation in relation to the GDP, the Investment 21.3%, the Government Consumption 18.8% and the Foreign Sector, 4.7%.

Net Lending of the Country amounted to R$ 35.6 billions in 2004

In the accumulated result of the year, net lending reached R$ 35.6 billions against R$ 11.2 billions in 2003, a result that can be explained, mainly, by the increase of R$ 26.4 billions in the Foreign Balance of Goods and Services.

In the fourth quarter, the Net Lending of the National Economy was R$ 5.3 billions, representing an increase of R$ 4.7 billions when compared to the same period of 2003 (R$ 0.6 billion). This increase is a consequence mainly of the variation of the Foreign Current Balance (R$ 4.7 billions), caused by the increase of the Foreign Balance of Goods and Services, which passed from a surplus of R$ 15.6 billions, in the fourth quarter of 2003, to R$ 18.7 billions, in the same period of 2004. Another factor that contributed to the net lending increase in this comparison was the reduction of R$ 1.3 billion in the Net Property Income sent abroad (R$ 16.4 billions in the fourth quarter of 2004 against R$ 17.7 billions in the same period of 2003).

Integrated Economic Accounts - 2003 and 2004 – Transactions of the Rest of the World with the National Economy

The year of 2004 was marked by increases of the Direct Investments and amortization

 In 2004 there was an expressive increase in the foreign direct investment (IED) in the National Economy, from R$ 52.9 billions, against R$ 30.9 billions in 2003. In the fourth quarter of 2004, the foreign direct investment was R$ 16 billions, against R$ 10.7 billions in the fourth quarter of 2003. According to the report of the CEPAL, the foreign direct investment (IED) in 2004 increased 44% in Latin America and in Caribe reaching US$ 56.4 billions, being the first time, since 1999, that the IED increases in the region. In South America, the increase was of 46% (US$ 34.1 billions), while in Mexico and in the Caribbean Basin it was 42% (US$ 22.3 billions).

The international reserves increased R$ 5.6 billions in 2004, against a growth of R$ 26.4 billions in 2003. In the fourth quarter of 2004, the international reserves increased R$ 4.4 billions, compared to a reduction of R$ 13.7 billions in the fourth quarter of 2003.

In the fourth quarter of 2004 the country accomplished a disbursement of R$ 2.6 billions referent to amortization with the IMF, while in the same period of 2003, the disbursement was R$ 18.5 billions. In the total of the year 2004, there was a decrease in the entrance of resources of loans and financing and continuity of the process of amortization of these liabilities (payment obligations) with the rest of the World, mainly those of long-term.

The assets transactions of the National Economy increased R$ 32.3 billions in 2004 and R$ 25.4 billions in 2003. Without the accounting of the transactions with the IMF, the country would present a net positive borrowing of R$ 8.1 billions and growth in the international reserves of R$ 7.0 billions in the fourth quarter of 2004.

Assets Variations

Regarding the assets (receiving rights), despite the growth in Cash and Deposits - F.2, in the last quarter of 2004, which amounted to R$ 6.9 billions (against R$ 1.6 billions in the third quarter of 2003), in the sum of the quarters of 2004 it was recorded a net negative investment of R$ 4.5 billions, compared to a net positive investment of R$ 48.5 billions in 2003.

There was an increase in the net negative investment regarding the instrument Shares and Other Capital Participation - F.5 that passed from R$ 167 millions in the fourth quarter of 2003 to R$ 1.9 billions in the same period of 2004. The determinant factor of this growth in the third quarter of 2004 was the increase of the IBD (Brazilian Direct Investment) in the form of participation in the capital. In the total of the quarters of 2004, there also was an increase in the net positive investment by this instrument, which was R$ 20.4 billions, compared to a positive investment of R$ 1.6 billions in 2003.

Liabilities Variations

Regarding the liabilities variations, we observe an increase in the amortization by Securities except Shares - F.3, which were R$ 889 millions in the fourth quarter of 2003, passing to R$ 5.6 billions in the same quarter of 2004. The payment of long-terms bonds negotiated in the foreign market and the withdrawal of notes and commercial papers, negotiated abroad contributed for this result. Also in the total of quarters of 2004 the total of amortization were of R$ 21.1 billions, against R$ 4.1 billions in 2003.

In relation to the instrument Loans and Financing F.4, there was a reduction in the amount of amortization paid in the fourth quarter of 2004, totaling R$ 6.6 billions, against R$ 17.0 billions in the same period of 2003. The determinant factors of this movement were the reduction in the payments relative to the loans of the International Monetary Fund (IMF) for the regularization of the Balance of Payments, which were of R$ 18.5 billions in the fourth quarter of 2003 and of R$ 2.6 billions in the same period of 2004. Nevertheless, in the total of the accounting of the year of 2004 the amortization through Loans and Financing were negative in 33.2 billions.

By Shares and Other Capital Participation - F.5, funding was achieved, in the fourth quarter of 2004, amounting to R$ 18.4 billions in the fourth quarter of 2004, more than in the last quarter of 2003 (R$ 14.1 billions). In the total of the quarters of 2004 the funding amounted to R$ 59.9 billions (R$ 37 billions in the total of 2003). As it was previously mentioned, in 2004 we could observe the expressive growth in the participation of the foreign direct investment in the Brazilian Economy, being this factor responsible for the increase of this instrument in this year.

The financial instrument Other Credits and Debits - F.7 passed from a positive funding of R$ 5.0 billions in the fourth quarter of 2003 to a negative funding of R$ 990 millions in the same quarter of 2004. This change was caused by the reduction of the funding through short-term commercial credits in the fourth quarter of 2004. In relation to the annual data, there was a funding reduction through this instrument, which passed from a negative funding of R$ 520 millions in 2003 to a negative funding of R$ 4.9 billions in 2004.

Quarterly GDP now includes the revisions in the data of the previous quarter

Through a chronogram of the Quarterly Accounts it was established, once a year, a revision in the data of the published series. This revision occurred in November, when the data of the third quarter of the year were published.

Nevertheless, as the series of data that presented significant adjustments are being included, it was decided that since this publication, referent to the fourth quarter of 2004, the National Quarterly accounts will begin to include the revisions of the data series of the previous quarter. Therefore, this publication includes the revision regarding data of the third quarter of 2004. This revision aims to include the updating in the series of the surveys used in the calculation of the Quarterly Accounts.

The series with seasonal adjustment continue to present changes in the previous data due to the inclusion of new indicators, and eventual methodological improvements will continue to be included in the publication of the third quarter of each year.

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¹ Report about Foreign Investment in Latina America and Caribe, 2004 – CEPAL – March, 2005.

² Excluding variations in the reserve assets.