Brazil’s GDP saw 0.8% growth

Quarter three economic expansion was driven by services, the Brazilian Institute of Geography and Statistics (IBGE) reported.

Agência Brasil
pauta@ebc.com.br

Rio de Janeiro – Brazil’s GDP grew by 0.8% in Q3 from Q2 as per seasonal-adjusted numbers. Year-on-year in Q3, GDP was up 1.3%.

The numbers were released this Friday (30) by the Brazilian Institute of Geography and Statistics (IBGE). In the four quarters through Q3 2018, GDP climbed 1.4% from the preceding 12 months.

Year-to-date through September, GDP was up 1.1% from a year ago. At current values, Q3 GDP was BRL 1.716 trillion. The rate of investment was 16.9%, while the savings rate was 14.9%.

The quarterly finance report made public today by the IBGE shows activity going up 0.7% for agriculture, 0.5% for services and 0.4% for industry.

“Although agriculture saw the strongest growth, the services sector was the key driver of growth, since it’s the most relevant sector to the GDP,” IBGE National Finance coordinator Rebeca Palis explained.

IBGE numbers show that services activities picked up across the board in Q3 from Q2, especially transportation, storage and postal services, which climbed 2.6%.

“This expansion has to do with the trucker strike. It stems from a compensatory effect following the strike that took place in Q2,” said Rebeca. She also noted that trade activity went up in connection with household consumption.

Activity was up 1.1% in retail; 1% in real estate; financial and insurance activities and related services were up 1%; information and communication was up 0.2%; other services activities were up 0.2%; and public administration, defense, healthcare, education and social security were up 0.1%.

Industry activity picked up by 0.4%, with process industries going up 0.8%. Both the extraction industries and construction saw 0.7% growth. The only category where activity slowed was electricity and gas, water, sewage and waste management, down 1.1%.

Year-to-date

Year-to-date results were fueled by industry, at 0.9% expansion, and services, up 1.4%, while agriculture activity slid by 0.3%.

Industry activities where activity picked up year-to-date through September were the process industries, up 2.3%, and electricity and gas, water, sewage and waste management, up 1.5%. Extraction industry activity remained flat, and construction was the only field where activity dropped, by 2.6%.

As for services, activity climbed in real estate, by 3%; retail, by 2.8%; transportation, storage and postal services, by 2.3%. other service activities, up 0.9%; and public administration, defense, healthcare, education and social security, by 0.3%. The only negative result was a 0.4% drop in information and communication.

Regarding domestic demand, year-to-date through September, gross fixed capital formation was up 4.5% and spending on consumption by households climbed 2%. Government spending on consumption varied by 0.3%. Goods and services imports were up 9.4%, while exports grew by 1.5%.

Translated by Gabriel Pomerancblum

Marcos Santos/USP Imagens

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