In the seasonally-adjusted series, the Gross Domestic Product - GDP grew 1.2% in the first quarter of 2021 in relation to the fourth quarter of 2020. Compared with the same quarter in 2020, the GDP rose 1.0%. The cumulative index in the four quarters ended in March 2021 dropped 3.8% compared with the four immediately previous quarters.

At current values, the GDP added up to R$2.048 trillion in the first quarter of 2021, being R$1.753 trillion relative to Value added - VA at basic prices and R$294.7 billion to Product taxes net of subsidies .

Still in the first quarter of 2021, the investment rate was 19.4% of the GDP, above that reported in the same period of 2020 (15.9%).

GDP rises 1.2% in relation to immediately previous quarter

In the seasonally-adjusted series, the GDP grew 1.2% in the comparison between the first quarter of 2021 and the fourth quarter of 2020. Agriculture (5.7%), Industry (0.7%) and Services (0.4%) registered positive rates.

Among the industrial activities, the advance was leveraged by Mining and quarrying industries (3.2%). Construction (2.1%) and Electricity and gas, water, sewage and waste management activities (0.9%) also recorded positive rates. The only negative performance came from Manufacturing industries (-0.5%).

In Services, Transportation, storage and mailing (3.6%), Financial intermediation and insurance (1.7%), Information and communication (1.4%), Trade (1.2%), Real estate activities (1.0%) and Other services (0.1%) posted positive figures. The only negative change came from Public administration, health and education (-0.6%).

Under the point of view of expenditures, Gross Fixed Capital Formation (4.6%) rose, whereas Household consumption expenditure (-0.1%) and Government consumption expenditure (-0.8%) registered negative changes over the immediately previous quarter.

In the foreign sector, Exports of Goods and Services expanded 3.7%, whereas Imports of Goods and Services increased 11.6% in relation to the fourth quarter of 2020.

GDP rises 1.0% over the first quarter of 2020

When compared with the same period last year, the GDP increased 1.0% in the first quarter of 2021. The Value Added at basic prices recorded a positive change of 0.8% and Product Taxes Net of Subsidies advanced 1.9%.

Agriculture grew 5.2% over the same period in 2020. This result can be mainly explained by the performance of some farm products that produced a relevant harvest in the first quarter, like soybeans, tobacco and rice, as well as by the productivity, visible in the estimate of change in the production vis-à-vis the planted area. Other crops that also had a relevant harvest in the quarter, like corn and cassava, pointed to a decrease in the annual production. Livestock and Fishing pointed to a weak performance in the first quarter of the year, whereas the estimates for Forestry were positive.

Industry rose 3.0%. In this context, the activity of Manufacturing industry (5.6%) registered the highest rise, mainly influenced by the manufacture of machinery and equipment, fabricated metal products, non-metallic mineral products and basic metals.

The activity of Electricity and gas, water, sewage and waste management activities (2.1%) also rose in the period, favored by the upturn of the economic activity, in spite of showing more unfavorable tariff flags in February and March in relation to the same period in 2020.

Mining and quarrying industries (-1.3%) retreated, affected by the drop in the extraction of petroleum and gas, even with the growth in the extraction of ferrous minerals. Construction (-0.9%) also dropped, though less than in the previous quarters. Employment in the activity dropped in relation to 2020, yet its typical inputs increased their output.

Services fell 0.8% over the same period in 2020. The dropping activities were: Other services activities (-7.3%), influenced by the decline in face-to-face services, and Public administration, defense, health, education and social security (-4.4%). The rises came from Information and communication (5.5%), Financial activities, insurance and related services (5.1%), Real estate activities (3.9%), Trade (3.5%) and Transportation, storage and mailing (1.3%).

Gross Fixed Capital Formation advanced 17.0% in the first quarter of 2021, the highest rate since the second quarter of 2010. Such growth was justified by the increase in the domestic production of machinery and equipment, by the impacts of Repetro and by the increase in software development.

Household consumption expenditure dropped 1.7%. Such result could still be explained by the increase in the inflation and reflections of the pandemic that negatively affected the labor market, reducing the number of job positions and the real wage bill. Government consumption expenditure also dropped (-4.9%) in relation to the first quarter of 2020.

In the foreign sector, Exports of Goods and Services advanced 0.8%, whereas Imports of Goods and Services increased 7.7% in the first quarter of 2021. Among the exports of goods, the sectors that mostly contributed to the positive result were: extraction of metallic minerals, food products, motor vehicles and tobacco products. On the other hand, exports of petroleum products and agricultural products retreated. In imports of goods, the rise was mainly due to chemicals, electrical devices and machinery, pharmochemicals and metal products.

GDP declines 3.8% in the cumulative index in four quarters

The cumulative GDP in the four quarters ending in March 2021 retreated 3.8% in relation to the four immediately previous quarters.  This rate resulted from the decline of 3.7% in the Value Added at basic prices and of 4.4% in the Product Taxes Net of Subsidies. The result of Value Added in this comparison was due to the following performances: Agriculture (2.3%), Industry (-2.7%) and Services (-4.5%).

The industrial activities with negative changes were: Construction (-6.9%), Manufacturing industry (-2.7%) and Mining and quarrying industry (-0.3%). The only positive figure came from Electricity and gas, water, sewage and waste management activities (0.5%).

In Services, the drops were: Other services activities (-13.0%), Transportation, storage and mailing (-8.6%), Public administration, defense, health and education, and social security (-5.5%) and Trade (-2.4%). The positive figures were obtained by Financial activities, insurance and related services (5.0%), Real estate activities (3.0%) and Information and communication (0.8%).

In the analysis of the demand, both Household consumption expenditure and Government consumption expenditure dropped 5.7%. Gross Fixed Capital Formation rose 2.0%. In the foreign sector, Export of goods and services retreated 1.0%, whereas Imports of goods and services dropped 9.2%.

Investment rate was 19.4% in Q1

In the first quarter of 2021, the investment rate was 19.4% of the GDP, above that reported in the same period last year (15.9%). Also in the first quarter of 2021, the savings rate was 20.6% (against 13.4% in the same period of 2020).

Net Borrowing reached R$60.1 billion against R$80.3 billion in the same period of 2020. The drop in Net Borrowing was mainly explained by the reduction of R$22.7 billion in Net Property Income sent to the Rest of the World, especially profits and dividends, and by the reduction of R$6.0 billion in the foreign balance of good and services.