São Paulo – Brazil’s Gross Domestic Product (GDP) stood at R$ 1.2 trillion (US$ 511 billion) in quarter three this year, down 0.5% from quarter two, according to figures released this Tuesday (3rd) by the Brazilian Institute of Geography and Statistics (IBGE).
In an interview to foreign correspondents, Finance minister Guido Mantega has said that Brazil’s economic performance is attached to that of the world economy, which should grow by up to 2.9% this year.
Earlier today, he said the GDP growth became more “concentrated” in quarter two this year, when it was up 1.8% from quarter one. Quarter three-on-quarter three, the GDP was up 2.2%. It is the worst performance since 2009, when the GDP dropped by 1.6% during quarter one.
According to the IBGE, government consumption was up 1.2% from the prior quarter, industry was up 0.1%, services were up 0.1%, exports were down 1.4%, imports were down 0.1% and agriculture was down 3.5% in quarter three from quarter two.
The investment rate was down 2.2% and family consumption was up 1%, despite a reduction in credit to consumers. Mantega denied that Brazil is losing investment and that it still depends on consumption in order to grow. “If we look at the last four quarters, we will see that investment exceeds consumption. During this period, investment was up 3.7% and consumption was up 2.85. This year, investment is outgrowing consumption,” said the Finance minister.
Mantega spoke in favour of the government’s actions and said federal spending is not out of control. “Revenue collection is improving and outpacing spending. Collection has gone down this year and spending has not gone up. This is a cyclical phenomenon and it had taken place in 2009, for instance. Spending is more resistant [to cuts] and now we are improving collection. Our main expenses are under control,” said the minister, who had forecasted “very good” fiscal results in November.
Earlier today, Mantega admitted that Brazilian growth was low in quarter three, and said it was the lowest among all members of the G20, a group comprising the world’s leading economies; he also stated that 2013 is “still” a year of crisis.
Quarter three-on-quarter two, China’s GDP was up 2.2%, the United Kingdom’s GDP was up 0.8%, the United States’ GDP was up 0.7%; Japan’s was up 0.5%, Germany’s was up 0.3%, Spain’s 0.1% and the Eurozone’s was up 0.1%. The French GDP was down 0.1%. Quarter three-on-quarter three, India’s GDP was up 4.8%, South Africa’s was up 1.8%, and Russia’s was up 1.2%.
Forecasts did not prove true
On Monday (2nd), Mantega had said the figures due for release today would show a 2.5% increase in GDP in quarter three this year from quarter three 2012, but the growth recorded by the IBGE was 2.2%.
The IBGE has also announced a revision of the 2012 GDP. The latest calculations show a 1% growth rate instead of the 0.9% rate announced before. In late November, the Brazilian president Dilma Rousseff told the Spanish newspaper El País that the revised 2012 GDP figures would show a 1.5% growth rate, which was not the case.
Mantega said this Tuesday that the GDP by the end of 2013 should grow at a rate similar to the world’s GDP, from 2.7% to 2.9%.
*Translated by Gabriel Pomerancblum
