GDP grew 4,2% in the first quarter of 2011.
Services drive economic expansion; industrial activity also rises; among the BRICS, Brazil only outperforms Russia; economists expect a slowdown in the coming period.
Brazil's Gross Domestic Product (GDP) increased by 1.3% in the first quarter of this year compared to the previous quarter, the Brazilian Institute of Geography and Statistics (IBGE) reported this morning. Economists had expected growth between 1% and 1,7% for the period, with the median projection pointing to an increase of 1,30%. Compared to the first quarter of 2010, GDP showed an increase of 4,2%. In this case, projections ranged from 3,78% to 5,10%, with a median of 4,36%.
The Gross Domestic Product (GDP) of the industrial sector grew 2,2% in the first quarter of this year, compared to the fourth quarter of last year, according to data released today by the Brazilian Institute of Geography and Statistics (IBGE). Compared to the first quarter of 2010, the industrial GDP showed an increase of 3,5% in the first three months of this year. The GDP of the agricultural sector rose 3,3% in the first quarter of this year, compared to the immediately preceding quarter. Compared to the first quarter of last year, the GDP of the agricultural sector increased by 3,1% in the same period of 2011.
The trade and transportation, storage and postal sectors registered the largest increases within the Gross Domestic Product (GDP) of the services sector, which advanced 1,1% in the first quarter of this year, compared to the last three months of last year. According to data released today by the Brazilian Institute of Geography and Statistics (IBGE), these sectors registered growth of 1,9% and 1,7%, respectively, in the first quarter of 2011 compared to the fourth quarter of 2010.
Information services grew by 1,1%, followed by public administration, health and education (0,9%) and real estate and rental activities (0,2%). The other services group remained stable in the quarter, while financial intermediation and insurance fell by 0,4%. Compared to the first quarter of last year, the services sector was the highlight of the GDP in the first quarter of 2011. While GDP grew 4,2% in the first quarter of 2011 compared to the same period in 2010, the services sector grew by 4%.
All activities registered growth, with particular emphasis on financial intermediation and insurance (6,4%), wholesale and retail trade (5,5%), and information services (5,1%). The transportation, storage, and postal services sector expanded by 4,7%. Other services – which include services provided to businesses and families, commercial health and education, accommodation and food services, association services, domestic services, and maintenance and repair services – grew by 3,5%. The public administration, health, and education sector expanded by 2,8%, and real estate and rental services registered an increase of 1,9%.
Review
IBGE also revised upwards the growth of Brazil's GDP in the fourth quarter of 2010, from a rise of 0,7% to an expansion of 0,8%, compared to the third quarter of last year, with seasonal adjustment.
Despite the impressive figure, among the BRICS countries (Brazil, Russia, India, China, and South Africa), Brazil's 4,2% increase in Gross Domestic Product (GDP) in the first quarter of this year, compared to the same quarter last year, surpassed only Russia's growth in the same period, which was 4,1%. The Brazilian data was released this morning by the Brazilian Institute of Geography and Statistics (IBGE). For the other countries, the IBGE used information from the World Bank's statistical institute. According to the IBGE, China leads the growth ranking in this group of countries, with an advance of 9,7% in the period. India (7,8%) and South Africa (4,8%) follow.
In a list containing 15 countries and economic blocs, provided by IBGE (Brazilian Institute of Geography and Statistics), the 1,3% expansion of the economy in the first quarter of this year, compared to the fourth quarter of last year, places the country in third position in the GDP ranking, along with Chile, which also showed a 1,3% increase in the period. In the list of 15 countries and regions, which compares the first quarter of 2011 and the last three months of last year, the first position is held by Germany, with a 1,5% increase in GDP. Next are South Korea (1,4%), Brazil and Chile (both with 1,3%), France and Belgium (both with 1,0%), Netherlands (0,9%), European Union and Greece (0,8%), Mexico and United Kingdom (0,7%), United States (0,4%), Spain (0,3%), Italy (0,1%) and Japan (-0,9%).