Brazil's GDP Rises 7.5% in 2010, Achieving Best Result in 25 Years

Finance Minister says economy shows significant and sustainable growth potential

Mar 03, 2011, 13:03 ET from SECOM

BRASILIA, Brazil, March 3, 2011 /PRNewswire/ -- The Federative Republic of Brazil announced today that its economy saw a 7.5 percent increase in annual real gross domestic product (GDP) in 2010 as compared to the previous year, the highest level of growth since 1986. According to data from the Brazilian Institute of Geography and Statistics (IBGE), the total output of goods and services in Brazil for the year 2010 reached R$ 3.67 trillion (approximately US$ 2.1 trillion, using the 2010 average exchange rate). In the fourth quarter of 2010, GDP rose 0.7 percent from the third quarter of that year (3.0 percent in annualized rates), in the seasonally adjusted series.

"The 2010 growth rates demonstrate that the Brazilian economy is growing at a significant and sustainable pace, which supports the country's plans for long-term investment projects", said Finance Minister Guido Mantega. "The performance of gross fixed capital formation and the domestic market, along with a low and stable inflation rates, suggest that high levels of growth will be maintained over the coming years. Brazil's economic growth figures are now in a process of accommodation, after an exceptional recovery from the global financial crisis of 2008 and 2009. We expect GDP to grow around 4.5 to 5.0 percent in 2011, a rate that would be sustainable and generate no inflationary pressures," commented Mr. Mantega.

Annual Performance in 2010

With regard to Brazil's economic activities, the 7.5 percent growth in 2010 over 2009 was led by the industry sector, which grew 10.1 percent, followed by the agriculture sector (6.5 percent growth) and service sector (5.4 percent growth).

From the standpoint of demand, the highlight was the gross fixed capital formation, which increased 21.8 percent in 2010 over 2009. Household consumption grew 7.0 percent and government consumption recorded a 3.3 increase.

Performance in the Fourth Quarter of 2010 

Minister Mantega commented that "the figures for the fourth quarter of 2010 demonstrate that there are no signals of overheating in the Brazilian economy at present."

The 0.7 percent GDP growth recorded in the last quarter of 2010 over the previous quarter (in seasonally adjusted series) reflects a 1.0 percent increase in the service sector, a 0.3 percent decrease in the industry sector and a 0.8 percent contraction in the agriculture sector.

A comparison between the fourth and third quarters of 2010 also shows that gross fixed capital formation decreased 0.7 percent, household consumption rose 2.5 percent and government consumption recorded a 0.3 percent contraction.

"There was also, in the fourth quarter of 2010, a better balance between the export and import of goods and services," said Minister Mantega. Exports rose by 3.6 percent and imports by 3.9 percent in the fourth quarter of 2010 as compared to the third quarter.

For more information, please visit the IBGE's website at http://www.ibge.gov.br/home

SUMMARY TABLE – Brazil GDP at market prices from Q4 2009 to Q4 2010

Rates (%)

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Accumulated in the year/same period as in the previous year

(-)0.6

9.3

9.2

8.4

7.5

Last four quarters/four immediately previous quarters

(-)0.6

2.2

5.3

7.5

7.5

Quarter/same quarter as in the previous year

5.0

9.3

9.2

6.7

5.0

Quarter/immediately previous quarter (seasonally adjusted)

2.5

2.2

1.6

0.4

0.7

Source: Brazilian Institute of Geography and Statistics (IBGE)



About IBGE:  The Brazilian Institute of Geography and Statistics (IBGE ) is the independent and autonomous agency responsible for statistical, geographic, cartographic, geodetic and environmental information in Brazil.

About SECOM: The Secretariat for Social Communication (SECOM) of the Presidency of the Federative Republic of Brazil is responsible for coordinating the public relations activities for the government of Brazil.   For more information on the Federative Republic of Brazil, please visit www.brasil.gov.br

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RELATED LINKS

http://www.ibge.gov.br/home


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