GDP changes 0.4% in Q2 2019

August 29, 2019 09h00 AM | Last Updated: December 04, 2019 12h02 PM

In the seasonally-adjusted series, the Gross Domestic Product - GDP changed 0.4% in the second quarter of 2019 compared with the first quarter. The GDP increased 1.0% compared with the same period in 2018. It rose 0.7% in the year (first semester) in relation to the same period last year. The cumulative index in the four quarters ended in June 2019 reached 1.0% compared with the four immediately previous quarters.

COMPARISON PERIOD INDICATORS
GDP AGRIC INDUS SERV GFCF CONSUMPTION HOUSEHOLDS CONSUMPTION GOVERNMENT
Quarter / immediately previous quarter (with seasonal adjustment) 0.4% -0.4% 0.7% 0.3% 3.2% 0.3% -1.0%
Quarter / same quarter a year ago (without seasonal adjustment) 1.0% 0.4% 0.3% 1.2% 5.2% 1.6% -0.7%
Cumulative in 4 quarters/ same period a year ago (without seasonal adjustment) 1.0% 1.1% -0.1% 1.2% 4.3% 1.5% -0.2%
Current values in the quarter (R$) 1.780 trillion 86.9 billion 324.4 billion 1.112 trillion 282.7 billion 1.133 trillion 349.5 billion
INVESTMENT RATE (GFCF/GDP) Q2 2019 = 15.9% 
SAVINGS RATE (SAVING/GDP) Q2 2019 = 15.2% 

At current values, the GDP added up to R$1.780 trillion in the second quarter of 2019, being R$1.523 trillion relative to Value added - VA at basic prices and R$256.9 billion to Product taxes net of subsidies .

In the second quarter of 2019, the investment rate was 15.9% of the GDP, above that reported in the same period of 2018 (15.3%). The support material of the Quarterly Accounts is on the right side of this page.

Main results of the GDP at market prices from Q3 2015 to Q3 2016
Rates (%) 2015.III 2015.IV 2016.I 2016.II 2016.III
Cumulative in the year / same period a year ago
< Annex: Table 3 >
-3.1 -3.8 -5.4 -4.5 -4.0
Last four quarters / four immediately previous quarters
< Annex: Table 4 >
-2.4 -3.8 -4.7 -4.8 -4.4
Quarter / same quarter a year ago
< Annex: Table 2 >
-4.5 -5.8 -5.4 -3.6 -2.9
Quarter / immediately previous  quarter (with seasonal adjustment)
< Annex: Table 7 >
-1.6 -1.1 -0.5 -0.4 -0.8
Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais

GDP changes 0.4% in relation to immediately previous quarter

In the seasonally-adjusted series, the GDP changed 0.4% in the second quarter of 2019 compared with the previous quarter. Industry rose the most (0.7%), followed by Services (0.3%). Agriculture changed -0.4%.

The growth in Industry was due to the expansion of 2.0% in the Manufacturing industries and of 1.9% in Construction. Mining and quarrying industries (-3.8%) and the activity of Electricity and gas, water, sewage and waste management activities (-0.7%) retreated in this period.

In Services, the positive figures came from Real estate activities (0.7%), Trade (0.7%), Information and communication (0.5%) and Other services activities (0.4%). On the other hand, the activities of Administration, defense, public health and education, and social security (-0.6%), Transportation, storage and mailing (-0.3%) and Financial activities, insurance and related services (-0.1%) recorded a negative performance.

From the point of view of expenses, the Gross fixed capital formation - GFCF advanced 3.2% and Household consumption, 0.3%. Conversely, Government consumption declined 1.0% in the quarter.

Concerning the foreign sector, Exports of goods and services fell 1.6%, whereas Imports of goods and services increased 1.0% over the first quarter of 2019.

GDP advances 1.0% over Q2 2018

When compared with the same period last year, the GDP increased 1.0% in the second quarter of 2019, the tenth consecutive positive figure in this basis for comparison. The Value added at basic prices increased 0.9% and the Product Taxes net of Subsidies, 1.7%.

Agriculture changed 0.4% over the second quarter of 2018. This result can be mainly explained by the performance of some farm products that produced a relevant harvest in the second quarter and by the productivity, very clear in the estimate of the change in the amount produced in relation to the planted area and good performance of livestock.

Industry expanded 0.3%. The activity of Electricity and gas, water, sewage and waste management activities posted the biggest expansion (2.4%), favored by the effect of the tariff flags, which registered a better result in the second quarter of 2019.

Construction rose 2.0%, after 20 consecutive quarters of drops in this comparison. The Manufacturing industries rose 1.6%, influenced by the rising production of fabricated metal products, machinery and equipment, chemicals, basic metals and beverages.

On the other hand, the Mining and quarrying industries dropped 9.4%, as a result of the negative performance of the extraction of ferrous minerals, still related to the disaster in Brumadinho and its consequences.

Services grew 1.2% compared with the same period last year, highlighted by Information and communication (3.0%) and Real estate activities (2.7%). Still on the positive side, Trade - wholesale and retail (2.1%), Other services activities (1.6%) and Transportation, storage and mailing (0.3%) advanced. Financial activities, insurance and related services (-0.3%) and Administration, defense, public health and education, and social security (-0.1%) recorded negative figures.

Household consumption expanded 1.6%, the ninth consecutive advance in this comparison, mainly explained by the behavior of the credit indicators for natural persons, as well as by the expansion of the wage bill in the second quarter of 2019. 

The Gross Fixed Capital Formation advanced 5.2% in the second quarter of 2019, the seventh positive figure after 14 declining quarters. Such increase was justified by the growth in the imports and production of capital goods, as well as in construction. Government Consumption Expenditure fell 0.7% in relation to the second quarter of 2018.

In the foreign sector, Exports of goods and services (1.8%) and Imports of goods and services (4.7%) increased. Among the exports of goods, the growth was mainly explained by the increase in the products from the extraction of petroleum and natural gas; food products, petroleum products; chemicals, basic metals and pulp. In the imports of goods, the most relevant increases took place in machinery and equipment; fabricated metal products; electrical machines and devices; extraction of petroleum and natural gas and petroleum products.

GDP grows 1.0% in the cumulative index in four quarters

The cumulative GDP in the four quarters ending in June 2019 rose 1.0% in relation to the four immediately previous quarters.  This rate resulted from the advances of 1.0% in the Value Added at basic prices and of 0.9% in the Product Taxes net of Subsidies. The result of Value Added in this type of comparison reflected the performance of the following segments: Agriculture (1.1%), Industry (-0.1%) and Services (1.2%).

Under the point of view of expenditure, Gross fixed capital formation increased 4.3% and Household consumption expenditure, 1.5%. Conversely, Government consumption expenditure declined 0.2%. In the foreign sector, both Exports of goods and services (4.3%) and Imports of goods and services (5.4%) increased.

GDP accrues rise of 0.7% in quarter

The GDP increased 0.7% in the first quarter of 2019 against the same period in 2018, which represented a deceleration in relation to the expansion of 1.2% in the quarter ended in December 2018. In this basis for comparison, Services (1.2%) and Agriculture (0.1%) performed positively. The performance was negative in Industry (-0.4%).

Among the industrial activities, Mining and quarrying industries (-6.3%) and Construction (-0.1%) recorded a negative performance in the fist semester of the year. Manufacturing industries (0.0%) remained stable, while the activities of Electricity and gas, water, sewage and waste management activities (3.6%) increased.

In Services, Information and communication (3.4%), Real estate activities (2.8%), Other services activities (1.5%), Trade (1.3%), Transportation, storage and mailing (0.2%) and Administration, defense, public health and education, and social security (0.2%) advanced. Financial activities, insurance and related services (0.0%) remained stable.

The increase of 3.1% in Gross Fixed Capital Formation stood out in this comparison. Household consumption rose 1.5%, whereas Government consumption retreated 0.3%. In the foreign sector, Exports of goods and services and Imports of goods and services expanded 1.4% and 1.0%, respectively.

Investment rate is 15.9% in Q2

In the second quarter of 2019, the investment rate was 15.9% of the GDP, above that reported in the same period last year (15.3%). Also in the second quarter of 2019, the savings rate was 15.2% (against 15.8% in the same period of 2018).

Net Borrowing reached R$11.0 billion against R$1.8 billion in the second quarter of 2018. This increase was mainly explained by the reduction of R$1.5 billion in the foreign balance of goods and services and the increase of R$8.8 billion in Net Property Income sent to the Rest of the World.