Brazil’s GDP Rises 0.6% in Third Quarter; Above Market Expectations
RIO DE JANEIRO, BRAZIL – The Brazilian Gross Domestic Product (GDP) rose 0.6 percent in the third quarter of 2019 compared to the second quarter of 2019. The data were released on Tuesday, November 3rd, by the Brazilian Institute of Geography and Statistics (IBGE).
In current values, the GDP reached R$1.842 trillion (US$438 billion). Compared to the same period in 2018, the GDP rose by 1.19 percent.
The institute also revised the GDP for 2019 up from 1.1 percent to 1.3 percent. The IBGE revised the GDP result for the second quarter to a 0.5 percent high, compared to a 0.4 percent advance previously made. The result for the first quarter, on the other hand, was revised to stability instead of a 0.1 percent drop.
On a quarterly basis, the highest increase was in agriculture and ranching, with a growth of 1.3 percent, followed by industry (0.8 percent) and services (0.4 percent).
As pointed out by the IBGE, growth in industry is due to the extractive industries (up 12.0 percent, driven by growth in oil production) and construction (1.3 percent). Electricity and gas, water, sewage, waste management activities (-0.9 percent), and transformation industries (-1.0 percent) retreated in the quarter.
In services, the positive results were in financial activities, insurance and related services (1.2 percent), trade (1.1 percent), information and communication (1.1 percent), real estate (0.3 percent), and other service activities (0.1 percent). The retreats were in the activities of transportation, storage, and mail (-0.1 percent) and administration, defense, public health and education, and social security (-0.6 percent).
From the perspective of expenditure, gross fixed capital formation (2.0 percent) and household consumption expenditure (0.8 percent) had a positive variation. The government’s consumption expenditure (-0.4 percent) retreated in relation to the immediately preceding quarter.
In the external sector, exports of goods and services retreated 2.8 percent, while imports of goods and services grew 2.9 percent in the same comparison.
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