Brazil Q1 2011 GDP Up 1.3 Percent; Economy Shows Sustainable Growth

BRASILIA, Brazil, June 3, 2011 /PRNewswire/ -- The Federative Republic of Brazil announced today that its 2011 first quarter Gross Domestic Product (GDP) rose 1.3 percent over the fourth quarter of 2010 in the seasonally adjusted series (5.4 percent in annualized rates), according to data released by the Brazilian Institute of Geography and Statistics (IBGE). National production of goods and services amounted to R$ 939.6 billion (approximately US$ 563.8 billion, using the Q1 2011 average exchange rate) demonstrating that the Brazilian economy has been expanding at a sustainable pace.

The GDP increase is a result of growth in the agriculture sector (3.3 percent) and the industrial sector (2.2 percent), when compared to the fourth quarter of 2010. The services sector showed growth of 1.1 percent.

Regarding domestic demand, the growth rate of gross fixed capital formation was 1.2 percent in the first quarter of 2011 over the last quarter of 2010. Household consumption grew 0.6 percent, while public administration consumption increased 0.8 percent. The Investment Rate for the quarter was 18.4 percent of GDP.

"The measures we have been taking in order to maintain sustainable growth rates for the Brazilian economy are showing results, and gross fixed capital formation continues to expand in a steady path, which guarantees economic expansion without generating inflation," said Minister Guido Mantega, noting that the growth forecast for the economy this year is 4.5 percent.

Q1 2011 Quarter-on-Quarter Performance

Brazil's economy recorded a 4.2 percent increase for the first quarter of 2011 compared to the first quarter of 2010. Among economic activities, deserving highlight are the services (4.0 percent increase) and the industrial (3.5 percent increase) sectors, followed by agriculture (3.1 percent increase).

The growth rate of the gross fixed capital formation showed strength on the quarter-on-quarter performance, with 8.8 percent growth. Brazil reported 5.9 percent growth in household consumption, and 2.1 percent growth in the consumption of public administration in the first quarter of 2011 over the same quarter of 2010

Annual Performance

The accumulated GDP for the four quarters ending in the first quarter of 2011 grew by 6.2 percent against the previous four quarters. Over this period, the GDP report showed growth in the industrial sector, with 7.4 percent growth, followed by the agriculture sector, with 5.8 percent growth, and the services sector, with 4.9 percent growth.

During this period, gross fixed capital formation increased 17.1 percent, household consumption increased by 6.4 percent, and consumption of public administration increased by 3.2 percent.

SUMMARY TABLE – Brazil's GDP results at market prices from Q1 2010 to Q1 2011

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 2011 GDP press release in Portuguese, please visit:  www.ibge.gov.br/english/

About SECOM:

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

This material is distributed by Fleishman-Hillard Inc. on behalf of the Secretariat for Social Communication of the Presidency of Brazil.  Additional information is available at the Department of Justice, Washington, D.C.

SOURCE SECOM