Regarding supply, agriculture reached, in the six first months of the year, R$ 78.10 billion; industry, R$ 321.59 billion; and services R$ 462.45 billion. The Gross Domestic Product at market prices of the second quarter of 2005 was R$ 480.40 billion, being R$ 429.15 billion of value added at basic prices and R$ 51.25 billion in Excise Tax. Among the components of value added, Agriculture reached R$ 42.45 billion; Industry, R$ 170. 08 billion; and Services, R$ 238.99 billion.

Among the components of demand, in the same period, Family Consumption totaled R$ 263.01 billion; Government Consumption, R$ 86.67 billion; and Gross Fixed Capital Formation, R$ 95.59 billion. The Balance of Goods and Services remained with surplus in R$ 20.90 billion (R$ 81.25 billion of Exports and R$ 60.35 billion of Imports), and the Stock Change was R$ 14.2 billion.

Economy Net Lending falls in relation to 2004

In relation to the accumulated index of the first semester, Net Lending of the National Economy reached R$ 13.1 billion, compared to R$ 14.8 billion in the same period of 2004. Considering the second quarter of 2005, Net Lending remained R$ 5.9 billion, which means, there was a reduction of R$ 3.7 billion in the comparison with the second quarter of the previous year (R$ 9.6 billion). The decrease occurred mainly due to the diminishment in the Foreign Balance (R$ 3.6 billion), caused by the decrease in the Foreign Balance of Goods and Services, which changed from a surplus of R$ 23.4 billion, in the second quarter of 2004, to R$ 20.9 billion in a similar period of this year.

The Gross National Income reached R$ 887.3 billion in the first semester; and the Gross Savings, R$ 213.2 billion. In the second quarter of 2005, Income reached R$ 462.8 billion, against R$ 418.5 billion in the same period of 2004. On this same base of comparison, Savings remained in R$ 115.2 billion in 2005, representing an increase of R$ 6.2 billion in relation to the second quarter of 2004 (R$ 109.0 billion).

The investment rate in the second quarter of 2005 was 19.9% of the GDP. In the comparison with the same period of each year (Q2), it was the highest value since 1997 (20.4%). The savings rate reached 24% of the GDP, the second highest value since 1995, only losing to the year of 2004, when it recorded 25% of the GDP. Below, the graphics portray the evolution of these rates.

In the second quarter of 2005, the national economy reached a positive net funding of R$ 5.7 billion. In the same period of 2004, this figure was negative, amounting to R$ 16.5 billion. The investments in assets changed from a negative value of R$ 7.5 billion, in the second quarter of 2004, to R$ 12.2 billion in the same period of 2005.

The positive net funding of R$ 5.7 billion occurred mainly due to the decrease of the securities amortization, Securities except Shares – F.3, and to the increase of funding through Shares and Other Capital Participation - F.5, in relation to the Q2 2004.

In the first case, F.3, funding in the second quarter of 2004 was negative in R$ 17.1 billion and changed to a negative funding of R$ 1.2 billion in the same period of 2005. The main factor for this fall was the reduction of the paid amortization of long-term securities. In the second case, F.5, the positive net funding changed from R$ 4.3 billion (Q2 2004) to R$ 11 billion (Q2 2005), and the main reason for this growth was the elevation of the Foreign Direct Investments (FDI) which changed R$12.6 billion in this quarter.

In the first semester of 2005, international reserves increased R$ 25.7 billion

In the accumulated index of the first semester of 2005, an increase of R$ 25.7 billion and R$ 32.8 billion in the international reserves was registered, considering or not transactions with the IMF,.

The information in tables IV.3 and IV.4 show that, considering the transactions referent to the agreements with the International Monetary Fund in the second quarter of 2005, the national economy reduced its international reserves by R$ 1.9 billion, compared to a reduction of R$ 4.0 billion in the same quarter of 2004. Excluding the transactions of the IMF, there could be an increase in the reserves in R$ 2.1 billion, against an increase of R$ 254 millions in the second quarter of 2004.

Regarding the behavior of the financial instruments, table IV.5 shows the assets and liabilities operations of the national economy for the second quarters of 2004 and 2005.

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[1] Including assets reserves variation

[2] Excludind assets reserves variation