Rio de Janeiro – The Brazilian economy continued to grow in the second quarter this year, but at a slower pace than in previous quarters, according to figures disclosed this Friday (2nd) by the Brazilian Institute of Geography and Statistics (IBGE). When compared with the same period of last year, the Gross Domestic Product (GDP) grew by 3.1% in the second quarter of this year, the lowest rate since the third quarter of 2009, when there was a decline of 1.8%.
In the first quarter, the growth rate was 4.2%, as against the same period of 2010. According to the National Accounts Coordination manager with the IBGE, Rebeca Palis, the slowing down of economic growth can be explained by factors such as the increase in the benchmark interest rate (Selic) and rising import volumes.
According to the IBGE, imports of goods and services increased by 14.6% in the second quarter this year when compared with the same period of last year, whereas exports grew by 6%. The actual benchmark interest rate went from 9.4% a year in the second quarter of 11.9% a year in the second quarter this year.
Out of all economic activities, the only segment whose performance improved in the second quarter this year, as against the first one, was information services. The segment grew by 5.5% compared with the second quarter of 2010, driven by the mobile telephony market expansion.
Civil construction and trade, for instance, recorded their worst performances since the third quarter of 2009. In trade, the 4.9% growth rate was the lowest since the 3.2% decline seen in 2009. The 2.1% growth rate in civil construction is the worst performance since the 8.3% retraction recorded in the third quarter of 2009. Agriculture had its worst performance of all three economic sectors, having remained stable as against the second quarter of 2010.
*Translated by Gabriel Pomerancblum
