BRASILIA, Brazil, June 8 /PRNewswire/ -- The Brazilian federal government announced today that its first quarter of the Gross Domestic Product (GDP) in 2010 grew 2.7 percent compared to the last quarter of 2009. According to data released today by the Brazilian Institute of Geography and Statistics (IBGE), national production of goods and services amounted to R$ 826 billion, or US$ 444 billion. These results confirm that the economy has recovered from the international financial crisis. The economy achieved its strongest growth in more than 15 years, with 9 percent quarter-on-quarter growth, comparing the first quarter of 2010 with the same period in 2009.
"Until recently, Brazil's economy was only expected to grow slightly in 2010. For the second quarter of 2010 there are already indications of slowdown. The year growth will be high but the rates along the period are decreasing. There was a significant change in economic policy recently, and the State began to drive this growth through new initiatives," said Finance Minister Guido Mantega. He also commented that the country's growth is "well-balanced, with no bubbles."
According to the Minister, the relatively low debt of Brazil, the burgeoning demand for housing, and planned investments in major infrastructure projects worth US$ 450 billion between 2011 and 2014 will build a foundation for the Brazilian economy to reach a level comparable to those of industrialized nations in upcoming years.
"Over the next five years, many emerging countries will be the ones to lead worldwide economic growth, accounting for two thirds of the world economy. Brazil's GDP growth in the next five years will be one of these main drivers," Minister Mantega predicts.
Brazil's 2.7 percent quarterly growth in the first quarter of 2010 compared to in the fourth quarter of 2009 is due to steady growth in the Industry (4.2 percent), Agriculture (2.7 percent) and Services (1.9 percent) sectors. The investment rate during this period was 18.0 percent of GDP, higher than the rate for the same period last year (16.3 percent).
Comparing the first quarter of 2010 to the same period in 2009, Brazil's Industrial sector fared the strongest, with an increase of 14.6 percent. Brazil's Services sector also grew by 5.9 percent, while Agriculture grew by 5.1 percent following four quarters of decline. The growth rate of Gross Fixed Capital Formation in the quarter was 26.0 percent, the largest of the series started in 1995. The savings rate over this period reached 15.8 percent of GDP.
In the year-on-year comparison, Brazil's real GDP increased by 2.4 percent in the seasonally adjusted series. The highlight of the GDP report was the Services sector, with growth of 3.6 percent, followed by a steady performance in the Industrial sector (0 percent growth), and a decline in the Agriculture sector of -3.3 percent. With reference to domestic demand, gross fixed capital formation fell 1.5 percent annually, household consumption increased by 6 percent, and consumption of public administration grew by 3.1 percent over the twelve-month period.
SUMMARY TABLE – Main results of GDP at market prices from Q1 2009 to Q1 2010
Accumulated in the year/same period as in the previous year
Last four quarters/four immediately previous quarters
Quarter/same quarter as in the previous year
Quarter/immediately previous quarter (seasonally adjusted)
Source: Brazilian Institute of Geography and Statistics (IBGE)
The Brazilian Institute of Geography and Statistics (IBGE)
To access more information about IBGE in English and the full 1Q 2010 GDP press release in Portuguese, please visit: www.ibge.gov.br/english/
The Secretariat for Social Communication (SECOM) of the Presidency of Brazil is responsible for coordinating the public relations activities for the government of Brazil. The official website of the Brazilian State is www.brasil.gov.br.