The Gross Domestic Product (GDP) recorded an increase of 0.6% in Q3 2019 against Q2 2019, in the seasonally adjusted series. Versus the same period in 2018, there was an increase of 1.2%. In terms of the cumulative index in the four quarters ended Q3 2019, GDP grew by 1.0%, against the four previous quarters. As for cumulative results up to September, GDP grew by 1.0%, against the same period in 2018.

In current figures, GDP reached R$ 1.842 trillion in Q3 2019, being R$ 1.582 trillion relative to Value Added and R$ 259.7 billion  to Taxes net of subsidies . Complete information on the Quarterly Accounts can be found on this page. 

GDP grows 0.6% against Q2 2019

GDP increased by 0.6% in the first quarter of 2019 against the second quarter of 2019. Agriculture recorded the biggest increase (1.3%), followed by Industry (0.8%) and Services (0.4%).

The growth of Industry was due to Mining and quarrying industries (hike of 12.0% pushed by oil extraction and Construction (1.3%).  Decrease was observed in Electricity, gas, water, sewage, and waste management activities (-0.9%) and Manufacturing industries (1.0%).

In Services, the positive results were recorded by Financial activities, insurance and related services (1.2%), Trade (1.1%), Information and communication (1.1%) Real estate activities (0.3%) and Other service activities (0.1%). The major drops occurred in Transportation, storage and mailing (-0.1%) and Administration, defense, public health and education, and social security (-0.6%).

From the perspective of expenditure, Gross Fixed Capital Formation (2.0%) and Household consumption (0%) recorded positive changes. Conversely, Government consumption (-0.4%) retreated over the figure in the previous quarter.

In the foreign sector, Exports of goods and services fell by 2.8% whereas  Imports of goods and services increased in the same comparison (2.9%).

GDP increases by 1.2% against the same quarter in 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. Value added at basic prices increased 1.1% and Product Taxes net of Subsidies, 1.8%.

Agriculture grew by 2.1% against the same period in 2018, mainly due to the performance of some products with a relevant output  in Q3, according to the Systematic Survey of Agricultural Production (LSPA) released in November, such as corn (23.2%) and upland cotton (39.7%).

Industry grew 1.0%, and Construction, 4.4%, in the second hike after twenty months of increase in a row, in this comparison.  Mining and quarrying industries also recorded increase (4.0%), pushed by oil and gas extraction.

The activity Electricity and gas, water, sewage, and waste management activities increased 1.6%, due to the effect of tariff flags.

Manufacturing industries decreased by 0.5%, mainly due to the production of Pulp and paper; Manufacture of chemicals; Pharmaceuticals and Basic metals.

The Value added of Services increased 1.0% in the same comparison, with a highlight to Information and communication  (4.2%) and Trade (2.4%).  There were also advances in Real estate activities (1.9%), Financial activities, insurance and related services (1%) and Other service activities (0.9%). The negative results came from Administration, defense, public health and education, and social security (-0.6%) and Transportation, storage and mailing (-1.0%).

In Q3 2019, Household consumption increased by 1.9%, in its tenth successive quarter recording increase.  Such improvement can be explained by the behavior of the credit indicators for natural persons and by the increase of real wage bill.

Gross Fixed Capital Formation advanced 2.9% in the second quarter of 2019, the eighth positive figure after 14 quarters recording decrease That increase was pushed by construction and production of capital goods.  Government consumption fell 1.4% in this comparison.

Regarding the foreign sector, Exports of goods and services decreased 5.5% and Imports of goods and services increased 2.2%, respectively, in Q3 2019.

In Q3, GDP had a cumulative result of 1.0% in the year

The cumulative GDP in the year up to the third quarter of 2019 rose 1.0% against the same period in 2018. In this comparison, Agriculture increased 1.4%, as well as Industry (0.1%) and Services (1.1%).

In terms of internal demand, increase was recorded by Gross Fixed Capital Formation (3.1%) and Household consumption (1;8%).  Government consumption declined -0.7%. In the foreign sector, Imports of goods and services expanded 1.6%, whereas Imports of Goods and Services fell 2.0%.

GDP grew  1.0% in terms of cumulative rate in the last four quarters

The cumulative GDP versus figures in the four months ending in September 2018 rose 1.0% against the same quarter in 2018.  This rate resulted from the advances of 1.0% in Value Added at basic prices and 1.1% in the Product Taxes net of Subsidies. The rates of the activities were: Agriculture (20%), Industry (0.0%) and Services (1.1%).

Among the industrial activities, there were increases in Electricity and gas, water, sewage and waste management activities (0.1%) and Construction (0.4%). Manufacturing industries (-0.5%) and Mining and quarrying industries (-0.9%) recorded decreases. 

In Services, the highlights were Information and Communication (3.4%) and Real estate activities  (2.7%).  Also recording increases are: Other service activities (1.5%) Trade (1.4%) and Transportation, storage and mailing (0.4%).  Financial activities, insurance and related services (0.0%) remained unchanged, whereas Administration, defense, public health and education, and social security (-0.1%) recorded a decrease.

Gross Fixed Capital Formation increased 3.0% and Household consumption, 1.7%. Conversely, Government consumption declined 0.8%. It was the ninth quarter with increase of Household consumption and the sixth one with increase of Gross Fixed Capital Formation.

In the foreign sector, both Exports of goods and services (4.3%) and Imports of goods and services increased, by 1.3% and 2.4%, respectively.

In Q3 2019, GDP reached R$ 1.8 trillion

The Gross Domestic Product amounted to R$ 1.842 trillion, being R$ 1,582 relative to Value Added at basic prices and R$ 259.7 billion to Product Taxes net of Subsidies. The investment rate in Q3 2019 was 16.3% of the GDP, virtually the same as in the same period a year ago (16.3%). The savings rate was 13.5% in Q3 2019 (versus 13.1% in the same period of 2018).

Revision of the Quarterly National Accounts

In the release of Q3 every year, the Quarterly National Accounts undergo a more comprehensive revision.  In this release, the main aspects revised are presented below:

In Agriculture, the difference between the revised and the original result is mostly due to the incorporation of data from the Municipal Agricultural Production (PAM), the Municipal Livestock Production (PPM) and the Forestry Activities (PEVS).  Those surveys were included to replace data of short-term surveys in 2018.

In Industry, revisions were due to the update of primary data, among which is the Monthly Survey of Industry (PIM-PF).  In Services, the volume indexes of some activities were revised due to the update of primary data.  From the perspective of expenditure, differences were due to revisions from the perspective of demand.   

In addition to that, in 2018, there was the update of weights according to results of the System of Quarterly National Accounts for the year 2017, and also the use of the Denton algorithm to adjust the series.