Rio de Janeiro – Brazil’s Gross Domestic Product (GDP) shrank by 0.2% in Q1 2019 from Q4 2018. The decline occurred after hikes of 0.5% in Q3 and 0.1% in Q4 2018.
As per numbers released this Thursday (30) by the Brazilian Institute of Geography and Statistics (IBGE), Brazilian economy grew by 0.5% year-on-year and 0.9% in the four quarters through Q1.
Numbers show that the 0.2% drop in Q1 2019 from Q4 2018 was driven by a 0.7% decline in industry. The main declining activities were mining and quarrying (-6.3%), construction (-2%), and processing industries (-0.5%).
Agriculture and livestock have also declined (-0.5%). Services picked up 0.2% in Q1, avoiding a higher economic downturn.
On the demand side, the decline was driven by the gross fixed capital formation, namely investments, which dropped by 1.7% in Q1 2019 from Q4 2018. Exports have also declined (-19%).
At the same time, government and family consumption grew by -0.4% and 0.3%, respectively. Imports grew by 0.5%.
Translated by Guilherme Miranda