Rio de Janeiro – The Brazilian economy increased 0.1% in 2014, over the previous year. The Gross Domestic Product (GDP), the sum of all goods and services produced in the country, closed the year at R$ 5.52 trillion (US$ 1.72 trillion at current exchange rates), according to data released this Friday (27th) by the Brazilian Institute of Geography and Statistics (IBGE). In Q4, the GDP increased 0.3% over the 2014 Q3. In comparison with the 2013 Q4, the GDP dropped 0.2%.
The 0.1% expansion in 2014 was driven by the sectors of services, with an increase of 0.7% this year, and agriculture, which went up 0.4%. With a drop of 1.2%, the industry prevented a higher expansion of the GDP in the year. Under the demand standpoint, there was an increase of 0.9% in the consumption of families and of 1.3% in government consumption.
The gross fixed capital formation, which represents investments, dropped 4.4% in the year. Exports dropped 1.1%, while imports had a drop of 1% in the period.
The 2014 Brazilian domestic accounts were calculated on the basis of a new international methodology, which is being adopted by all countries. With this new methodology, IBGE also revised the GDP growths in 2012 and 2013. In 2012, the expansion rate went from 1% to 1.8%. In 2013, it went from 2.5% to 2.7%.
*Translated by Sérgio Kakitani
