GDP changes 0.2% in Q2 2018

August 31, 2018 09h00 AM | Last Updated: September 06, 2018 12h09 PM

In the seasonally-adjusted series, the GDP changed 0.2% in the second quarter of 2018 against the first quarter of 2018. It was the sixth positive figure after eight consecutive negative changes in this comparison. Services registered a positive performance of 0.3%, whereas Agriculture (0.0%) remained stable and Industry dropped 0.6%.

Comparison period Indicators (%)
GDP AGRIC INDUS SERV GFCF CONS. HOUSEHOLDS CONS. GOV
Quarter / immediately previous  quarter (with seasonal adjustment) 0.2 0.0 -0.6 0.3 -1.8 0.1 0.5
Quarter / same quarter a year ago (without seasonal adjustment) 1.0 -0.4 1.2 1.2 3.7 1.7 0.1
Cumulative in four quarters / same period a year ago (without seasonal adjustment) 1.4 2.0 1.4 1.4 2.6 2.3 -0.4
Current values in the quarter (R$ billion) 1693.3 89.6 308.1 1052.7 271.4 1063.4 333.0
Investment rate (GFCF/GDP) Q2 2018 = 16.0%
Savings rate (SAVING/GDP) Q2 2018 = 16.4%

The GDP added up to R$1.693 trillion at current values, with R$1.450 trillion in Value added at basic prices and R$242.9 billion in Product taxes net of subsidies.

It rose 1.0% in the second quarter of the year over the second quarter of 2017, the fifth consecutive positive figure in this comparison. Industry and Services increased 1.2%, while Agriculture changed -0.4%. The Value added at basic prices increased 1.0% and the Product Taxes net of subsidies, 1.6%. On the demand side, Consumption of Households rose 1.7%, the fifth consecutive quarter of advances compared with the same quarter last year.

The cumulative GDP over the last quarters increased 1.4% in relation to the immediately previous four quarters.

The investment rate reached 16.0% of the GDP, above that reported in the same period of 2017 (15.3%). Also in the second quarter of 2018, the savings rate was 16.4% (against 15.7% in the same period of 2017).

The support material of the Quarterly Accounts is on the right side of this page.

Main results of GDP from Q2 2017 to Q2 2018
Rates (%) 2017.II 2017.III 2017.IV 2018.I 2018.II
Cumulative over the year /
 same period last year
0.2 0.6 1.0 1.2 1.1
Last four quarters / four immediately previous quarters -1.2 -0.2 1.0 1.3 1.4
Quarter / same quarter a year ago 0.4 1.4 2.1 1.2 1.0
Quarter / immediately previous  quarter (with seasonal adjustment) 0.4 0.6 0.0 0.1 0.2
Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais

GDP changes 0.2% in Q2 over Q1 2018

Among the economic activities that contributed for the result of 0.2% in the second quarter of 2018, Services changed 0.3%, whereas Agriculture remained stable (0.0%) and Industry fell 0.6%.

In Industry, the activities of Electricity and Gas, Water, Sewage, Activities of Residue Management and Mining and Quarrying Industries increased 0.7% and 0.4%, respectively. On the other hand, both Manufacturing Industries and Construction retreated 0.8%.

In Services, the activities of Information and Communication (1.2%), Real Estate Activities (1.2%), Financial Activities, Insurance and Related Services (0.7%) and Other Services Activities (0.7%) rose. The major drops occurred in Transportation, Storage and Mailing (-1.4%), Trade (-0.3%) and Administration, Defense, Public Health and Education, and Social Security (-0.2%).

Household Consumption Expenditure and Government Consumption Expenditure registered positive changes of 0.1% and 0.5%, respectively. Conversely, Gross Fixed Capital Formation declined 1.8% in relation to the immediately previous quarter.

In the foreign sector, Exports of Goods and Services reduced 5.5%, while Imports of Goods and Services retreated 2.1% over the first quarter of 2018.

GDP grows 1.0% compared with Q2 2017

The GDP rose 1.0% compared with the second quarter of 2017. Industry and Services increased 1.2%, while Agriculture changed -0.4%.

In Industry, Manufacturing Industries increased 1.8%, mainly influenced by the rise in the manufacture of vehicles; computer equipment; petroleum derivatives; beverages; basic metals; machinery and equipment; and furniture. Construction remained on the negative side (-1.1%) compared with the same period of 2017. On the opposite side, Mining and Quarrying Industries rose 0.6% as a result of the retreat in the extraction of petroleum and natural gas, offset by the increase in the extraction of ferrous ores. The activity of Electricity and Gas, Water, Sewage, and Activities of Residue Management, on its turn, grew 3.1%, benefited from the rise in the consumption of electricity.

In Services, the advance of 3.0% in Real Estate Activities stood out. Trade – wholesale and retail – (1.9%), Transportation, Storage and Mailing (1.1%), Other Services Activities (0.9%), Financial Activities, Insurance and Related Services (0.6%), Administration, Defense, Public Health and Education and Social Security (0.5%) and Information and Communication (0.4%) also recorded positive figures.

Household Consumption Expenditure increases 1.7% in Q2

Household Consumption Expenditure expanded 1.7% in the second quarter of 2018, the fifth consecutive quarter of advances in the comparison with the same quarter last year. This result can be explained by the behavior of the credit indicators for natural persons, as well as of the lower inflation and interest rates than those registered in the second quarter of 2017.

Gross Fixed Capital Formation advanced 3.7% in the second quarter of 2018, the third positive figure after 14 declining quarters. This increase was due to the rise in the imports and in the production of capital goods, since Construction remained with a negative performance. Government Consumption Expenditure changed 0.1% in relation to the second quarter of 2017.

In the foreign sector, Exports of Goods and Services fell 2.9%, whereas Imports expanded 6.8% in the second quarter of 2018.

GDP in Q1 accrues rise of 1.1%

The GDP accrued a rise of 1.1% in the first quarter of 2018 over the same period of 2017, following an expansion of 1.8% in the quarter ended in December 2017. In this comparison, Services (1.4%) and Industry (1.4%) increased, though Agriculture dropped 1.6%.

Among the industrial activities, Manufacturing industries rose 2.8%, followed by the activity of Electricity and Gas, Water, Sewage, and Activities of Residue Management (1.9%). On the other hand, Construction and Mining and Quarrying Industries fell in the first quarter of the year (1.7% and 0.6%, respectively).

In Services, only Information and Communication (-1.4%) reported a negative figure. The biggest advance was registered in Trade (3.2%), followed by Real Estate Activities (2.9%), Transportation, Storage and Mailing (1.9%), Other Services Activities (0.9%), Administration, Defense, Public Health and Education, and Social Security (0.5%) and Financial Activities, Insurance and Related Services (0.3%).

The increase of 3.6% in Gross Fixed Capital Formation stood out in this comparison. Household Consumption Expenditure grew 2.3%, while Government Consumption Expenditure declined 0.3%. In the foreign sector, Imports of Goods and Services increased 7.3% and Exports of Goods and Services, 1.3%.

Cumulative GDP in last four quarters is 1.4%

The cumulative GDP over the four months ending in June 2018 was of 1.4% in relation to the four immediately previous quarters.  This rate resulted from the advances of 1.3% in the Value Added at Basic Prices and 2.6% in the Product Taxes Net of Subsidies. The result of this type of comparison was a result of the performances of Agriculture (2.0%), Industry (1.4%) and Services (1.4%).

Gross Fixed Capital Formation rose 2.6%, the first positive figure since the second quarter of 2014, and Household Consumption Expenditure increased 2.3%, the third rise in a row. Conversely, Government Consumption Expenditure remained declining (-0.4%). In the foreign sector, Exports of Goods and Services grew 4.7% and Imports of Goods and Services, 7.1%.

Investment rate is 16.0% in Q2

In the second quarter of 2018, the Investment rate was 16.0% of the GDP, above that reported in the same period of 2017 (15.3%). The Savings rate was 16.4% against 15.7% in the second quarter of 2017.

The National Gross Income hit R$1.672 trillion against R$1.608 trillion in the comparison with the second quarter of 2017. On the same basis for comparison, Gross Savings reached R$278.2 billion against R$256.6 billion in the same period of 2017.

Net Borrowing reached R$1.9 billion against a Net Lending of R$14.4 billion in the same period a year ago. This result was mainly explained by the reduction of R$19.0 billion in the external balance of goods and services and of R$2.1 billion in Net Property Income sent to the Rest of the World.