According to information taken from IBGE’s Quarterly National Accounts¹, the GDP rate was a consequence of the 4.8% rise of value added at basic prices and of the 9.1% rise of excise tax.  GDP per capita² in real terms increased by 4.0% compared to the figure in 2006, and reached R$ 13,515.00.

The table below presents the main results for GDP per capita at market prices, relative to the last five quarters. The graph below shows the increase of GDP and GDP per capita since 2000.

Agriculture is the activity with highest increase in 2007

The result for value added was affected by the performance of agriculture (5.3%), industry (4.9%) and services (4.7%). The increase of agriculture is mainly due to crops, being the highlights, in this case, wheat (62.3%), upland cotton (33.5%), grain corn (20.9%), sugarcane (13.2%) and soybeans (11.1%). The falling products were coffee (grain) (-16.7%), rice (in husk) (-3.7%) and beans (-4.4%).

Among the subsectors of industry, the major increase came from manufacturing industry (5.1%), followed by: construction and by electricity and gas, water and sewage services and urban cleaning. Each one of these subsectors had increase of 5.0%. In mining and quarrying industry the positive change was 3.0%.

The biggest increases in services were those in: financial mediation and insurance (13.0%), information services (8.0%) and trade (7.6%). There were also increases in transportation, storage and mailing services (4.8%), real estate and rents (3.5%), other services (2.3%), administration, health and public education (0.9%).

Investments have had highest annual increase since 1996

In the analysis of demand, household consumption expenditure increased (6.5%) for the fourth consecutive year. It was favored by the hike of 3.6% in the salary mass of workers, in real terms, and by the nominal increase of 28.8% in the balance of credit operations of the financial system, with free resources for physical persons. Government consumption expenditure increased 3.1% and the gross formation of fixed capital (GFFC, the same as investment) as well, by 13.4%. It was the highest annual rate since the beginning of the series, in 1996.

In the foreign sector, exports rose by 6.6% and imports, by 20.7%. Since 2006, the increase of exports has been inferior to that of imports.

GDP grew 1.6% from Q3 to Q4 2007

In the fourth quarter of 2007, GDP grew by 1.6% in comparison with the figure in the third quarter of the same year, considering a seasonally adjusted series. Services had the highest increase (1.6%), followed by industry (1.4%). On the other hand, agriculture fell (0.3%).

In the analysis of internal demand, the highlight was the increase of household consumption (3.7%). Gross formation of fixed capital increased by 3.4%, after five consecutive quarters with increase; government consumption expenditure did not undergo any changes. 

In the realm of foreign demand, exports increased by 2.6%. Imports increased at a higher rhythm (5.6%), for the 17^th consecutive quarter, in this comparison basis.

GDP grew by 6.2% in comparison with Q$ 2006

In comparison with the same period in 2006, the GDP at market prices grew by 6.2% in the fourth quarter of 2007. Value added increased by 5.3%; taxes, by 11.6%, especially due to the performance of imports, which caused increase of Excise Tax. 

Among the sectors which contribute to value added, the main highlight was agriculture (8.6%), followed by services (5.3%) and industry (4.3%). In the industrial activity, the highlight was electricity and gas, water, sewage and urban cleaning, with 6.5% of increase, which is explained, mainly, by the household consumption of electricity. In the services sector, the highlights were financial mediation and insurance (20.0%), information services (8.9%), retail and wholesale trade (8.4%), transportation, storage and mailing services (4.9%) and real estate and rents (2.4%).

Among the components of internal demand, the main highlight was the increase of 16.0% of gross formation of fixed capital, which resulted, mainly, from the increase of production and from the importation of machinery and equipment.

Household consumption reached the positive rate of 8.6% in the fourth quarter of 2007, compared to the same period in 2006; it was the seventeenth consecutive increase in this comparison. Government consumption expenditure had hike of 2.2% in the fourth quarter of 2007, versus the same period in 2006.

Exports remained on a growing trend, with rate of 6.4% in the period. Imports also rose one more time in this type of comparison, by 23.4%; it was the seventeenth consecutive increase, since the fourth quarter of 2003.

Country reached the end of 2007 with net borrowing of R$ 4.5 billion

In 2007, GDP at market prices reached R$ 2.588 trillion, being R$ 2.190 trillion relative to value added and R$ 367.9 billion, to excise tax. The main figures, in 2006 and in 2007, are show in the table below:

In the annual result, net borrowing reached R$ 4.5 billion, versus net lending of R$ 20.8 billion in 2006. This reduction can be mainly seen as a consequence of the reduction of the foreign balance of goods and services, with R$ 29.0 billion, and of the reduction by R$ 5.1 billion in net revenue of property sent to the rest of the world.

Gross national revenue reached R$ 2.5 trillion in 2007, versus R$ 2.3 trillion in 2006. Gross savings reached R$ 453.0 billion, versus R$ 412.8 billion in the previous year.