At market prices, R$ 453,8 million refer to Value Added at basic prices and R$ 54,9 billion to Excise Tax. The GDP accumulated in the semester was R$ 987,1 billion.

The Gross Domestic Product at market prices in the second quarter of 2006 was R$ 508,7 billion, being R$ 453,8 billion relative to Value Added at basic prices and R$ 54,9 billion relative to Excise Tax. Among the components of Value Added, Agriculture and Livestock reached R$ 37,9 billion; Industry R$ 184,5 billion and Services, R$ 252,9 billion. Thus, the GDP accumulated in the first quarter was R$ 987,1 billion, and, in terms of supply, Agriculture and Livestock reached R$ 72,9 billion; Industry R$ 352,2 billion and Services, R$ 501,3 billion.

Among the components of demand, in the second quarter, Family Consumption amounted to R$ 282,3 billion, Government Consumption, to R$ 94,2 billion and Gross Formation of Fixed Capital, to R$ 102,2 billion. The Balance of Goods and Services had a surplus of R$ 16,6 billion (R$ 78,6 billion from exports and R$ 62,0 billion from imports) and the Stock Variation was R$ 13,4 billion.

The investment rate in the second quarter of 2006 reached 20.1% of the GDP. In comparison with the second quarters of previous years, this one is the highest rate since 1997 (20.4%). The savings rate (23.2% of the GDP) fell in relation to the figure of the same period in the previous year (23.9%).

Net lending fell by R$ 2,8 billion in relation to the second quarter of 2005

In the second quarter of 2006, the Net Lending of the National Economy was R$ 3,1 billion, that is, there was reduction (R$ 2,8 billion) in relation to the second quarter of 2005 (R$ 5,9 billion). That happened, above all, due to the decrease of the Current Foreign Balance (R$ 2,8 billion) caused by the diminishment of the Foreign Balance of Goods and Services, which changed from a surplus of R$ 20,9 billion to R$16,6 billion, from the second quarter of 2005 to the same period in 2006. The accumulated net lending in the semester reached R$ 6,6 billion, versus R$ 13,1 billion in the first quarter of 2005.

Table IV.1 – Integrated Economic Accounts - Q 2 2005 and Q2 2006  National Economy

The total of Gross National Income reached R$ 492,4 billion in the second quarter of 2006, versus R$ 462,5 billion in the same period of 2005. Gross Savings reached R$ 118,3 billion in 2006, with an increment of R$ 3,5 billion, when compared to the second quarter of 2005 (R$ 114,8 billion). In the first quarter, Gross National Income reached R$ 955,8 billion, and Gross Savings, R$ 224,4 billion.

Table IV.2 – Integrated Economic Accounts – Q2 2005 and Q2 2006
Transactions of the Rest of the World with the National Economy

External financing and more commercial credits lead to increase of Net Funding of the National Economy

In the second quarter of 2006, the National Economy had an increase of the assets variation [1] – which changed from a positive net investment of R$ 18 million, in the second quarter of 2005, to R$ 984 million, in the second quarter of 2006. In terms of the variation of assets, the net funding changed from minus R$ 6,6 billion to R$ 2,1 billion, considering the same period of time.

The result of F.2 – Cash and Deposits contributed to the increase of the assets variation in the quarter. Instrument F.2 changed from a negative net investment of R$ 29,4 billion, in the second quarter of 2005, to a negative net investment of R$ of 13,2 billion, in the equivalent period in 2006. In this change of F.2, the highlight was the increase of the net investment of Reserves as Cash and Deposits – of negative net investments of R$ 25,8 billion and R$ 6,4 billion, respectively, in the second quarters of 2005 and 2006. Even after the increase of net investments of the National Economy in the Rest of the World, there was significant reduction of the positive net investment, through F.3 – Securities except Shares: from R$ 24 billion in the second quarter of 2005, to R$ 9,5 billion in the equivalent quarter in 2006. This result was caused by the variation of investments in F.32 – Securities except Long-Term Shares, in which there was reduction of net investments of International Reserves as Bonuses and Notes from R$ 27,6 billion, in the second semester of 2005, to R$ 11,8 billion in the same period in 2006.

In terms of the liabilities variation in the quarter, the highlight was the reduction of the negative net funding of Loans and Financing – F4, and the increase of the positive net funding of Other Credits and Debts – F7. In terms of the first instrument, F4 had a positive net funding of R$ 19,7 billion in the second quarter of 2005, whereas in the same period in 2006, the net funding was positive by R$ 1,7 billion. It is worth mentioning that the net funding in F.4 increased both in terms of Long and Short Term. The behavior of F.41 – Short-Term Loans and Financing – changed from a negative net funding of R$ 11,4 billion to a positive net funding of R$ 40,1 million. In F.42 – Long-Term Loans and Financing – there was  a negative net funding of R$ 8,3 billion in the second quarter of 2005, to a positive net funding of R$ 1,7 billion in the same quarter in 2006. The increase of funding through F.42 was affected by the financing granted by Multilateral Organizations – increase of R$ 5,8 billion in the quarter, as well as by the conclusion of amortizations with the IMF. With reference to instrument F.7 – Other credits and Debts – net funding was positive by R$ 7,4 billion in the second quarter of 2006, versus R$ 1,9 billion, also positive, in the equivalent period in 2005. The expansion of commercial credits was the main factor accounting for this change.

Despite the increase of net funding of the National Economy through the financial instruments F4 and F7, there was significant decrease of the funding with Securities except Shares – F3: from a negative net funding of R$ 1,2 billion in the second quarter of 2005, to a negative net funding of R$ 20,9 billion in the second quarter of 2006. The main decrease occurred in F.32 – Securities except Long-Term Shares. That happened especially because of the paying of R$ 241 million in April and R$ 1,5 billion in May to the Paris Club and amortization of R$ 4,3 billion as Republic Bonuses.

Table IV.3 – Financial Account Aggregates  - Q2 2005 and Q2 2006

International reserves increased by R$ 5,3 billion in the second quarter of 2006

As shown in table IV.3, despite the decrease of the Net Lending of the National Economy from R$ 5,9 billion, in the second quarter of 2005, to R$ 3,1 billion in the same period in 2006, international reserves increased by R$ 5,3 billion, versus decrease of R$ 1,9 billion in the same quarter of 2005. The fall of financing capacity in the quarter made up for the reduction of negative net funding – liabilities transactions and net patrimony of the National Economy – and also for the reduction of the positive net investments – active transactions of the National Economy.  

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¹ Including Reserve Assets.