GDP grows above the most optimistic forecasts.
IBGE has just released the second-quarter growth figures: 1,5%, when the top of market estimates pointed to 1,3%; growth in six months is already higher than what financial institutions predicted for the entire year; yesterday, the Finance Minister, Guido Mantega, stated that an "artificial pessimism" had been planted in the country; investments also grew strongly; the annualized rate is 6%; according to the minister, "confidence has been restored."
247 - Another cold shower for the pessimists. IBGE (Brazilian Institute of Geography and Statistics) just released this morning the GDP figures for the second quarter of the year. The Brazilian economy grew 1,5% in the period, which would generate an annual growth rate of 6%. It's a strong number – and one that surprised the market, since the most optimistic forecast pointed to growth of 1,3%.
In the first quarter, growth was 0,6%. With the second quarter figure, there is already an expansion of over 2%, when financial institutions, such as Itaú Unibanco, had been reporting mediocre performance, around 1,7% for the year.
Yesterday, during the presentation of the "Best of Money" awards, the Finance Minister, Guido Mantega, spoke about the economy. "A completely artificial pessimism was planted in the country," he stated, without anticipating the GDP figures. "But that's in the past, and what matters now is looking to the future."
A significant finding of the survey was gross fixed capital formation, which indicates that investments grew by 3,6%. In other words, business owners have returned to betting on the future. "Despite this artificial pessimism, confidence has been restored," said Minister Mantega.
Below, from the news report by Agência Brasil:
Brazilian economy grows 1,5% in the second quarter, according to IBGE.
Reporter from Agência Brasil
Rio de Janeiro – The Brazilian economy grew 1,5% in the second quarter of this year, compared to the previous quarter. The Gross Domestic Product (GDP), which is the sum of all goods and services produced in the country, totaled R$ 1,2 trillion in the period from April to June, according to data released today (30) by the Brazilian Institute of Geography and Statistics (IBGE).
In the first quarter, GDP grew 0,6% compared to the previous quarter. On the production side, the main highlight was agriculture, which saw a 3,9% increase in the quarter compared to the previous quarter. The industrial (2%) and services (0,8%) sectors also registered growth.
On the demand side, there was growth in gross fixed capital formation – which represents investments – of 3,6%, in government consumption (0,5%) and in household consumption (0,3%). Exports increased by 6,9%, while imports rose by only 0,6% during the period.
Compared to the second quarter of 2012, GDP grew by 3,3%. The economy also grew by 2,6% year-to-date and 1,9% over the last 12 months.
Agriculture and construction stand out in the second quarter.
The agricultural and construction sectors, with increases of 3,9% and 3,8% respectively, were the highlights of the Brazilian economy in the second quarter of this year, compared to the previous quarter.
According to Rebeca Palis, manager of National Accounts at IBGE (Brazilian Institute of Geography and Statistics), the strong performance of agriculture is driven by increased production of soybeans, corn, beans, and rice. "All with significant harvests this quarter. And all with productivity gains, that is, with a greater increase in production than in the planted area," she said.
According to the Brazilian Institute of Geography and Statistics (IBGE), the Gross Domestic Product (GDP), which is the sum of all goods and services produced in the country, grew by 1,5% during the period. All subsectors of the economy experienced growth. The manufacturing industry and commerce grew above average, both at 1,7%.
The remaining subsectors had the following growth rates: financial intermediation, supplementary pension and related services (1,1%); mineral extraction industry (1%); transport, storage and mail (1%); information services (0,9%); electricity, gas and water production and distribution (0,8%); other services (0,7%); real estate activity and rental (0,7%); and public administration, health and education (0,1%).
Compared to the second quarter of 2012, agriculture was also the main highlight, with a 13% increase. The manufacturing (4,6%), construction (4%), and commerce (3,5%) sectors also grew above the GDP rate of 3,3%.