The Gross Domestic Product (GDP) accumulated in the four quarters of 2005 grew by 2.3% in comparison with the previous year, according to IBGE. The rate resulted from the growth of Value Added at basic prices (2.1% ) and of Taxes on Products (3.9%). GDP per capita [1] grew by 0.8% in 2005.

The figures for Value Added in 2005 resulted from the performance of its  three subsectors: Industry (2.5%), Services (2.0%) and Agriculture (0.8%).

The growth rate of agriculture was 0.8% in 2005, the lowest figure since 1997 (when there was fall of 0.8%.)

Among the subsectors of Industry, the highlight was Mining and Quarrying (10.9%). Also important were the contributions from Public Utilities, with growth of 3.6%, Manufacturing Industry, and Construction, both with growth rates of 1.3%.

 The graph below (II.2) shows growth rates accumulated in the last three quarters for GDP at market prices, since the first quarter of 1993. It can be seen that, after the fourth quarter of 2003, when the growth of GDP reached 0.5%, there was acceleration of the rate, which reached 4.9% in the end of 2004, and then fell to 2.3% in the end of 2005.

Family Consumption increased by 3.1%, completing two consecutive years of growth, favored by the rise of 5.3% of the wages of workers. Another factor which contributed to this result was the growth of 36.7% (in nominal terms) of the balance of credit transactions of the financial system with free resources for persons. Government Consumption grew by 1.6%.

The Gross Fixed Capital Formation also grew by 1.6% in 2005, in comparison with 2004. In terms of the foreign sector, the Exports of Goods and Services grew by 11.6% and the Imports of Goods and Services by 9.5%, with deceleration in comparison with the rates obtained in 2004: 18% and 14.3%, respectively.

GDP changed by 0.8% in comparison with the third quarter

Family Consumption grew by 1.3% in the fourth quarter of 2005, after increase of 1.1% in the third and of 1.2% in the second quarters of the same year. Government Consumption remained constant at 0.0%. Gross  Fixed Capital Formation had positive change of 1.7%. Besides, the Exports of Goods and Services grew, for the eleventh consecutive quarter, by 0.7%.The Imports of Goods and Services in this quarter fell by 1.3%.

GDP grew by 1.4% in comparison with the same quarter in 2004

GDP grew by 1.4% in the fourth quarter of 2005, in comparison with the same periods in 2004. The Value Added at basic prices grew by 1.3% and Taxes on Products, by 2.3%.

In terms of industrial activity, the highlight was Mining and Quarrying, with growth of 12.1%. In second place were Public Utilities, with 3.2% of growth, and Construction, with 3.1%. Still concerning this comparison, Manufacturing Industry was the only subsector to have a negative result (-1.2%).

The sector of Services had the best performance in the fourth quarter of 2005, compared to the same period in 2004, with positive rates in all its subsectors. The most important contributions came from Trade (wholesale and retail), with rates of 2.9% and Communications (2.8%). Also relevant were the results of Financial Institutions (2.0%), Transportation (1.7%), Public Administration (1.6%) and Other Services (1.6%).

 Among the components of domestic demand, in the fourth quarter of 2005 in comparison with the same period in 2004, the rate for Family Consumption was 3.4%. Government Consumption, grew by 0.8% in the fourth quarter of 2005 over the same period in 2004. Gross Fixed Capital Formation grew by 2.7%, affected by the growth of Construction.

In terms of foreign demand, the Exports of Goods and services remained on an upward trend, with rate of 8.1% in the period, the lowest figure since the third quarter of 2003, when it was 5.4%. The Imports of Goods and Services, once more, increased in this comparison, this time by 4.3%.

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[1] The term GDP per capita refers to the division of the overall GDP by the resident population. In 2005, the resident population in Brazil was about 184,2 million inhabitants, which means a population growth of 1.4% in 2005, according to estimates by the Department of Population and Social Indicators of IBGE.