The Gross Domestic Product - GDP hit R$7.389 trillion in 2019, a rise of 1.2% over 2018. The per capita GDP reached R$35,161.70, a rise of 0.4% in relation to the previous year.

Agriculture grew 0.4%, Industry retreated 0.7% and Services increased 1.5%.

Household consumption grows 2.6% On the other hand, the final consumption expenditure of the government retreated 0.5%.

In 2019, Gross Fixed Capital Formation (GCFC) increased 4.0%, the second positive result after four consecutive years of drops, and the investment rate (15.5%) grew 0.4 percentage points in relation to 2018, hitting the level of 2016.

This information is from the System of National Accounts 2019, which gathers new wider and detailed data from the IBGE and external sources to the Quarterly National Accounts.

The growth of the Gross Domestic Product (GDP) in 2019 was revised from 1.4% to 1.2%. This revision was mainly due to the incorporation of new data about the economic impact of the rupture of Brumadinho dam on January 25, 2019. As a result, the drop in the mineral mining industry was adjusted from -0.9% to -9.1%. The impact of this revision on the growth rate of the Gross Value Added of Industry was of -1 percentage point.

The rate of 1.2% in 2019 was the third consecutive positive one, after those registered in 2018 (1.8%) and in 2017 (1.3%). These rises were insufficient to reverse the cumulative drop in the 2015-2016 biennium (6.7%). At current values, the GDP was R$7.389 trillion in 2019, which corresponded to a per capita GDP of R$35,161.70, a rise of 0.4%.

The growth of 1.2% in the GDP in 2019 resulted from an increase of 1.0% in the gross value added, highlighted by the group of Services, which grew 1.5%, whereas Taxes on Product taxes less subsidies grew 2.7%. The investment rate of the Brazilian economy was 15.5% in 2019 and the consumption of households grew 2.6%.

In 2019, nine out of 12 groups of economic activity grew or remained stable, whereas Manufacturing industry (-0.4%), Administration, defense, public health and education, and social security (-0.4%) and mining industry (-9.1%), retreated.

The Services sector, which accounts for two thirds of the Brazilian economy, rose 1.5% in volume and it was responsible for 1.1 p.p. of the result of the gross value added. Agriculture, whose growth in volume this year was 0.4%, did not technically contributed in p.p. to that result of the gross value added. The Industry sector decreased 9.1% in volume and negatively influenced with 0.1 p.p.

Trade advanced 1.6%, highlighted by the growth in volume of the products corn in grain (42.0%), trucks and buses (23.0%) and alcohol (13.8%).

Real estate activities increased 2.4%, contributing with 0.2 p.p. to the increase of the value added of the economy. In contrast, Other services activities grew 2.8% and contributed with 0.5 p.p. to the total growth of the value added.

The activity of Electricity and gas, sewage and waste management activities registered a growth of 2.6%, contributing with 0.1 p.p. to the increase of the value added of the economy. The activity of Electricity, natural gas and other utilities grew 3.2%, whereas Water, sewage and waste management grew 1.1%.

The activity of Construction, which recorded negative figures since 2014, reversed that downward trend in 2019 with a rise of 1.9%.

Household consumption grew 2.6%

In 2019, final consumption expenditures, which encompass consumption expenditures of households, governments and non-profit institutions, grew 1.9%. Conversely, the final consumption expenditure of the government, which encompasses the expenditures with goods and services supplied by the government to the public, fell 0.5% in 2019, after having grown 0.8% in 2018.

Household consumption, which accounted for 74.8% of the final demand an for 63.7% of the GDP, grew 2.6%. The average change in the prices of goods and services consumed by households was 3.7% and the value of the monthly per capita final consumption of households changed from R$1,768.05 in 2018 to R$1,865.97 in 2019.

Gross Fixed Capital Formation advanced 4.0%, second rise after 4 years of drops

Gross Fixed Capital Formation (GFCF) added up to R$1.1 trillion in 2019. The change of 4.0% in volume was the steepest one among the components of the aggregate demand and the second positive result after four consecutive years of drops, contributing to the growth noticed in the economy. The investment rate, which is the ratio between Gross Fixed Capital formation and the GDP, was 15.5%, posting a growth of 0.4 percentage points in relation to 2018 and hitting the level of 2016.

Construction remained the most relevant component of the Gross Fixed Capital Formation, yet its representativeness dropped from 45.3% in 2018 to 44.4% in 2019. Machinery and equipment, the second most important group, changed from 40.3% to 40.9%, whereas the share of Intellectual property products changed from 12.4% to 12.8% in the period.

The share of residential construction in 2019 corresponded to 46.9% of the entire Construction, whereas other buildings and structures accounted for 53.1%. The composition of the group of Machinery and equipment was: transportation equipment (36.7%); information and communication technology equipment - ICT (14.8%) and other machinery and equipment (48.4%). In the Intellectual property products, 68.1% corresponded to software, databases and mineral exploitation, and 31.9%, to research and development (R&D).

Concerning the change in volume of the components of the GFCF, all the groups registered a positive change in 2019. The group with the biggest change was Intellectual property products (7.4%), leveraged by the growth of 12.0% in software, databases and mineral exploitation. After five consecutive years of retraction, Construction grew 4.8% over the previous year. Smaller positive changes were recorded in Machinery and equipment (2.2%) and Other fixed assets (3.0%).

Net borrowing of national economy rose 44.5%

In 2019, net borrowing of the Brazilian economy was R$241.0 billion, a rise of 44.5% in relation to 2018, when it hit R$166.7 billion. The performance of the foreign trade contributed to that increase. While the exports of goods and services registered a nominal growth of 1.8% (R$1.03 trillion in 2018 against R$1.04 trillion in 2019), the imports of goods and services rose 9.4% (from R$997 billion in 2018 to R$1.1 trillion in 2019).

Such fact caused the foreign balance of goods and services of the Brazilian economy to record a negative evolution, changing from a surplus of R$27.6 billion in 2018 to a deficit of R$47.6 billion in 2019.

It also contributed to worsen the net borrowing of the economy, the net increase of sending property income to the rest of the world, which changed from R$195.7 billion in 2018 to R$199.1 billion in 2019.

The sector of non-financial enterprises rose its net borrowing in 2019, pointing out to a normalization of the financial-economic situation of this sector in relation to the average historical results (-4.5% per year). Gross savings reversed the sequence of three years of growth, changing from R$507.9 billion in 2018 to R$438.6 billion in 2019. Gross Fixed Capital Formation in relation to the gross value added, in turn, increased 0.9 percentage points over 2018, its second year of growth in a row.

Net lending of financial enterprises registered a nominal drop of 11.7%, having changed from R$149.8 billion in 2018 to R$132.3 billion in 2019. The higher increase in the property income paid (8.4%) in relation to those received (6.3%), the increase of taxes on income and equity of 15.6%, as well as the growth of 32.8% in the Gross Fixed Capital Formation contributed to that result. The gross value added recorded a nominal growth of 8.9% in 2019, reaching R$457.4 billion.

The sector of general government posted a drop of 14.0% in net borrowing of the public sector, from R$429.2 billion in 2018 to R$369.6 billion in 2019. In general, the growth of 7.9% in the total revenue, influenced by the revenue of R$83.9 billion in the sharing bonus in the production of petroleum in the pre-salt, in opposition to a change of 5.9% in the expenditures of the three spheres of government, explained that behavior.

Household sector - Social benefits received by households rise 9.2%

The share of compensation of employees in the available gross income of the households grew up to 2011, when it hit the top level of 65.3% of the time series. Since then, that relation has been dropping. In 2019, the relation hit 61.5%.

The share of the final consumption of households in the available gross income of the sector remained stable against the previous year, staying at 89.9%. Gross savings, which corresponds to the difference between the available gross income and the final consumption of households, plus the adjustment by the change in the pension rights, slightly increased, hitting 11.0%, 0.2 percentage points above that registered in 2018.

In 2019, even with a nominal growth of 6.4% in the expenditures of final consumption, net lending of households increased 13.6%, reaching the value of R$184.6 billion against R$162.5 billion in the previous year. The growth of 5.3% in the compensation of employees, the increase of 6.5% in the property income received, against the reduction of 5.3% in the property income paid, contributed to that result. The increase in the social benefits received by households of 9.2% in nominal terms also contributed to the net lending, whereas the social contribution paid by this sector , which represented a lower amount, increased 9.9%.