GDP increases 1.1% in 2018, closes year at R$6.8 billion

February 28, 2019 09h00 AM | Last Updated: March 01, 2019 10h50 AM

The Gross Domestic Product - GDP increased 1.1% in 2018 over 2017, after rising 1.1% in 2017 and retreating 3.5% in 2015 and 3.3% in 2016. Agriculture (0.1%), Industry (0.6%) and Services (1.3%) rose. The GDP added up to R$6.8 trillion in 2018.

COMPARISON PERIOD INDICATORS
GDP AGRIC INDUS SERV GFCF CONS. HHOLDS CONS. GOV
Quarter / immediately previous quarter (w/ seasonal adjustment) 0.1 0.2 -0.3 0.2 -2.5 0.4 -0.3
Quarter / same quarter a year ago (w/o seasonal adjustment) 1.1 2.4 -0.5 1.1 3.0 1.5 -0.7
Cumulative in 4 quarters / same period a year ago (w/o seasonal adjustment) 1.1 0.1 0.6 1.3 4.1 1.9 0.0
Current values in the quarter (R$) R$1.8 trillion R$48.9 billion R$337.3 billion R$1.1 trillion R$283.4 billion R$1.2 trillion R$382.0 billion
Current values in the year (R$) R$6.8 trillion R$297.8 billion R$1.3 trillion R$4.3 trillion R$1.1 trillion R$4.4 trillion R$1.3 trillion
INVESTMENT RATE (GFCF/GDP) in 2018 = 15.8%
SAVINGS RATE (SAV/GDP) in 2018 = 14.5%

The per capita GDP changed 0.3% in real terms, reaching R$32,747 in 2018.

The investment rate was 15.8% of the GDP in 2018, below that reported in 2017 (15.0%). The savings rate was 14.5% (against 14.3% in 2017).

In the seasonally-adjusted series, the GDP rose 0.1% in the fourth quarter of 2018 over the third quarter. It was the eighth consecutive positive figure in this comparison. Agriculture and Services registered a positive change of 0.2%, whereas Industry retreated (-0.3%).

After 11 quarters of drops, the GDP rose 1.1% in the last quarter of 2018 over the fourth quarter of 2017, the eighth positive figure in a row.  Agriculture (2.4%) and Services (1.1%) increased, whereas
Industry dropped (-0.5%).

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

GDP rises 1.1% in 2018

The GDP grew 1.1% in relation to the previous year. The growth of the GDP resulted from the expansion of 1.1% of the Value added at basic prices and the rise of 1.4% in the volume of Product taxes net of subsidies. The result of the Value added in this type of comparison reflected the performance of the three activities that comprise it: Agriculture (0.1%), Industry (0.6%) and Services (1.3%).

As a result of this growth, the per capita GDP reached R$32,747 (at current value) in 2018, a slight advance (in real terms) of 0.3% in relation to 2017.

After the record growth in 2017, Agriculture positively changed 0.1% in 2018, mainly due to the performance of harvesting, highlighted by coffee (29.4%), cotton (28.4%), wheat (25.1%) and soybean (2.5%). On the other hand, harvests like corn (-18.3%), oranges (-10.7%), rice (-5.8%) and sugarcane (-2.0%) dropped.

In Industry, the positive highlight was the performance of the activity of Electricity and gas, water, sewage and waste management, which grew 2.3% over 2017. Having retreated -2.5%, Construction was the negative highlight.

Manufacturing industries, on their turn, advanced 1.3% in the year. This result was mainly influenced by the rises of motor vehicles, paper and pulp, pharmaceuticals, basic metals, and machinery and equipment.

Mining and quarrying industries expanded 1.0% in relation to 2017, due to the rise in the extraction of ferrous ores.

All the activities that comprise Services registered a positive change. Real estate activities advanced 3.1%, followed by Trade (2.3%), Transportation, storage and mailing (2.2%), Other services activities (1.0%), Financial activities, insurance and related services (0.4%), Information and communication (0.3%) and Administration, defense, public health and education, and social security (0.2%).

Among the components of the domestic demand, Household consumption (1.9%) and GFCF (4.1%) advanced, a positive figure after a sequence of four negative years. Government consumption remained stable (0.0%).

In the foreign sector, Exports of goods and services increased 4.1%, whereas Imports of goods and services advanced 8.5%.

GDP reaches R$6.8 trillion in 2018

In the cumulative result of the year, the GDP at current values added up to R$6.8 trillion, of which R$5.8 trillion are related to the Value added at basic prices and R$994.5 billion, to the Product taxes net of subsidies

The investment rate was 15.8% of the GDP in 2018, above that reported in the previous year (15.0%). The savings rate was 14.5% in 2018, against 14.3% in the previous year.

GDP rises 0.1% over Q3 2018

In the seasonally-adjusted series, the GDP rose 0.1% in the fourth quarter of 2018, compared with the immediately previous quarter. It was the eighth consecutive positive figure in this comparison. Agriculture and Services registered a positive change of 0.2%, whereas Industry retreated 0.3%.

Among the industrial activities, the drop was leveraged by Manufacturing industries
 (-1.0%). On the other hand, the activities of Electricity and gas, water, sewage and waste management (3.9%), Mining and quarrying industries (1.9%) and Construction (0.1%) recorded positive changes.

In Services, only Information and communication (2.1%), Real estate activities (0.7%), Other services activities (0.4%) and Administration, defense, public health and education, and social security (0.1%) posted positive changes, while the negative changes came from Financial activities, insurance and related services (-0.5%) Transportation, storage and mailing (-0.3%) and Trade (-0.1%).

Under the point of view of expenditure, Gross Fixed Capital Formation fell 2.5%. Government consumption expenditure declined 0.3%. Conversely, Household consumption expenditure increased 0.4%.

In the foreign sector, Exports of Goods and Services rose 3.6%, whereas Imports of Goods and Services dropped 6.6% over the third quarter of 2018.

GDP advances 1.1% over Q4 2017

Having risen 1.1% over the fourth quarter of 2017, Value added at basic prices grew 1.2% and Product taxes net of subsidies increased 0.5%.

Agriculture grew 2.4% in relation to the same period last year, influenced by the positive behavior of Livestock and Forestry.

Industry fell 0.5%, pressed by Construction (-2.2%), which had been retreating for 19 consecutive quarters, and also by the drop in Manufacturing industries (-1.5%).

The activity of Electricity and gas, water, sewage and waste management (4.6%) rose, as well as Mining and quarrying industries (3.9%), the latter mainly leveraged by the extraction of iron ore.   

Services increased 1.1% in this comparison, highlighted by the expansion of Real estate activities (3.4%) and Information and communication (2.5%). Transportation, storage and mailing also (1,7%), Other services activities (1.5%), Trade (wholesale and retail) (0.9%) and Administration, defense, public health and education, and social security (0.1%) also recorded positive figures. Only Financial activities, insurance and related services (-0.5%) dropped.

Among the components of the domestic demand, Household consumption expenditure (1.5%) and Gross fixed capital formation (3.0%) increased in relation to the same period last year, whereas Government consumption expenditure posted a negative result (-0.7%).

In the foreign sector, Exports of Goods and Services rose 12.0%, whereas Imports of Goods and Services advanced 6.0% in the fourth quarter of 2018.