The Gross Domestic Product (GDP) at market prices, calculated by IBGE, changed by 1.4% in terms of the comparison between the first quarter this year and the fourth quarter of 2005, considering a seasonally adjusted series. In relation to Q1 2005, the increase was 3.4%. The rate accumulated in four quarters (ended in the first quarter of 2006) was 2.4%, when compared with the four immediately previous quarters.

The result for the first quarter of 2006 (seasonally adjusted series), in relation to the immediately previous quarter, was influenced by the growth of three sectors which compose GDP. Industry (1.7%), Agriculture (1.1%) and Services (0.8%). It is worth mentioning that the series are seasonally adjusted using the direct method, that is, the series for Agriculture, Industry, Services, Value Added, GDP, Government Consumption, Family Consumption, Gross Formation of Fixed Capital, Exports and Imports of Goods and Services are individually adjusted.

In relation to the components of demand, the highlight is the increase of Gross Formation of Fixed Capital, from 3.7% in the first quarter this year, after the increase of 1.7% in the fourth quarter and decrease of 0.9% in the third quarter of 2005. Family Consumption had positive change of 0.5% and Government Consumption of 1.0%. Besides, Exports of Goods and services had, for the 12^th consecutive quarter, an increase of 3.9%. Imports of Goods and Services increased by 11.6%, the lowest rate since the fourth quarter of 1996.

In relation to the same quarter in the previous year, GDP increased by 3.4%

GDP at market prices increased by 3.4%, in the first quarter of 2006, in relation to the same period of 2005. Value Added at basic prices increased by 3.2% and Excise Tax, by 5.7%. The increase of the volume of Excise Tax occurred mainly due to the performance of Imports of Goods and Services, which caused increase of the volume for Taxes on Imports.

Industry was one of the main highlights: 5.0%

Two sectors contributed to the generation of Value Added, with positive rates in comparison with the same quarter of 2005. Industry, with a positive rate of 5.0%, followed by Services, with change of 2.8%. Agriculture, on the other hand, fell by 0.5%.

The result for Agriculture can be explained by the decrease of some products of the 2006 harvest, according to the April’s edition of the Systematic Survey of Agricultural Production (LSPA-IBGE). That happened to cotton (-22.4%), rice (-15.8%) and peanuts (-10.5%) whose harvests are very relevant in the first quarter. Another important factor, related to livestock, was the performance of bovine cattle, still recovering from a period affected by foot-and-mouth disease.  

In terms of industrial activity, the highlight was Mining and Quarrying, with growth 12.6%, benefited by the increase of the production of petroleum and gas (12.7%) and of iron ore (16.8%). Other highlights were: Construction, with 7.0% of growth, Public Utilities, with 4.3%, and Manufacturing Industry, with 3.0%.

The sector of Services grew by 2.8% in comparison with the same period in the previous year, accounting for the best performance on the quarterly basis of comparison since the first quarter of 2005. The major highlights were: Retail and Wholesale Trade (4.8%) and Transportation (3.6%). The other subsectors had the following results: Financial Institutions and Other Services (2.9%), Public Administration (2.6%), Rents (2.4%) and Communication (0.%).

Gross Formation of Fixed Capital (9.0%) was the highlight in terms of demand

Among the components of internal demand, Family Consumption reached the positive rate of 4.0%, the tenth consecutive increase in this comparison. Government Consumption increased by 1.6% in the first quarter of 2006 in comparison with the same period in 2005. Gross Fixed Capital Formation increased by 9.0%. This can be seen as a consequence of the growth of construction and of the production and importation of machinery and equipment.

In terms of external demand, Exports of Goods and Services remained growing, with a rate of 9.3% in the period. Imports of Goods and Services once more had increase of 15.9%, the best result since the third quarter of 2004 (17.7%). The highlights of the group of imports products were: metallurgy items, electric material and equipment. For the first time, since the fourth quarter of 2003, the growth of Imports of Goods and Services surpassed that of Exports of Goods and Services.

GDP accumulated in the last four quarters increased by 2.4%

GDP at market prices accumulated in the four quarters ending in the first quarter of 2006, increased by 2.4% in comparison with the four immediately previous quarters. This rate resulted from the increase of Value Added at basic prices (2.2%) and of Excise Tax (4.1%).

The result for Value Added in this type of comparison was a consequence of the performance of the three sectors which form it: Industry (3.0%0, Services (2.2%) and Agriculture (0.0%).

In the analysis of demand, Family Consumption increased by 3.3%, Gross Formation of Fixed Capital by 3.2%, and Government Consumption, by 1.7%.

Considering the external sector, Exports of Goods and Services increased by 10.7% and Imports of Goods and Services, by 10.4%.