GDP grows 0.4% within the third quarter and registers the fifth consecutive enhance, says IBGE

The Gross Domestic Product (GDP) increased by 0.4% from the second to the third quarter. Compared to the previous quarter, this is the fifth consecutive increase in the indicator — GDP totaled R$ 2.54 trillion in current values ​​in the period.

With this result, GDP reaches the highest level in the historical series, which began in 1996, according to data released today by the IBGE (Brazilian Institute of Geography and Statistics).

In addition to reaching the highest level in the series, GDP was 4.5% above the pre-pandemic level, recorded in the fourth quarter of 2019.

Below predictions. The result was below market expectations. According to a survey of 35 economists consulted by the Bloomberg agency, there was a forecast for GDP growth of 0.6% in the third quarter.

Despite economic activity having reached a record level, again reaching a higher level than before the onset of the 2014 recession, GDP showed a slowdown. In the 1st and 2nd quarters, increases were 1.3% and 1%, respectively.

What drove the increase in GDP? In the third quarter, the growth of the Brazilian economy was driven by the results of Services (1.1%) and Industry (0.8%).

In Services, a sector that accounts for around 70% of the economy, the highlights were Information and communication (3.6%), Financial activities, insurance and related services (1.5%) and Real estate activities (1.4%) .

The Other service activities segment (1.4%), which represents around 23% of total services and includes, for example, accommodation and food, also grew. “Other service activities have been recovering for some time, with the resumption of face-to-face services that had a dammed demand during the pandemic”, said the coordinator of National Accounts at the IBGE, Rebeca Palis.

The only segment of Services that was in the negative field, Commerce retreated -0.1% in the third quarter, while Construction, which is among the industrial activities, increased 1.1% in the period.

Agriculture fell. After three quarters with positive rates, Agriculture and Livestock decreased by 0.9%, reaching an accumulated drop of 1.5% in the year.

“The retraction is explained by the crops that have a relevant harvest in this quarter and had a drop in production, as is the case of sugarcane and cassava. In the year, the sector’s performance is linked to the results of soybeans, our main crop, whose production was affected by climate problems”, says Rebeca.

Household consumption slows down. On the expenditure side, the increase in GDP was driven by household consumption, which grew 1%, amidst an improvement in the country’s job market and a greater number of Brazilians with income. There was, however, a slowdown in the advance of consumption. In the 1st and 2nd quarters, increases were 0.9% and 2.1%, respectively.

Government consumption increased by 1.3% and investments increased by 2.8%, from the second to the third quarter.

Also high compared to the 3rd quarter of 2021. Compared to the third quarter of 2021, GDP grew by 3.6%.

Agriculture rose 3.2%, and Industry, 2.8%. The industrial sector, in turn, was impacted mainly by Electricity and gas, water, sewage, waste management activities (11.2%), benefited by green tariff flags.

Other outstanding activities in the sector were Construction (6.6%) and Transformation industries (1.7%).

In the same comparison, Services increased by 4.5%, with emphasis on Other service activities (9.8%) and Transport, Storage and mail (8.8%) and Information and communication (6.9%).

Revised 2021 result🇧🇷 The IBGE also released that GDP growth for 2021 was revised from 4.6% to 5%.

What is GDP and how is it calculated?

GDP represents the performance of a country’s economy during a certain period. Measured by the IBGE in Brazil, it is released every three months.

To arrive at the result and avoid distortions caused by double counting, the IBGE only measures the flow of new final goods and services. Therefore, it is incorrect to say that GDP is the total wealth existing in a country.

If a country produces R$ 100 of wheat, R$ 200 of wheat flour and R$ 300 of bread, for example, its GDP will be R$ 300, since the values ​​of flour and wheat are already included in the value of bread .

As the values ​​considered for the calculation are those that reach the consumer, the GDP also considers taxes on commercialized products.

In addition to reaching the highest level in the series, GDP was 4.5% above the pre-pandemic level, recorded in the fourth quarter of 2019.

Below predictions. The result was below market expectations. According to a survey of 35 economists consulted by the Bloomberg agency, there was a forecast for GDP growth of 0.6% in the third quarter.

Despite economic activity having reached a record level, again reaching a higher level than before the onset of the 2014 recession, GDP showed a slowdown. In the 1st and 2nd quarters, increases were 1.3% and 1%, respectively.

What drove the increase in GDP? In the third quarter, the growth of the Brazilian economy was driven by the results of Services (1.1%) and Industry (0.8%).

In Services, a sector that accounts for around 70% of the economy, the highlights were Information and communication (3.6%), Financial activities, insurance and related services (1.5%) and Real estate activities (1.4%) .

The Other service activities segment (1.4%), which represents around 23% of total services and includes, for example, accommodation and food, also grew. “Other service activities have been recovering for some time, with the resumption of face-to-face services that had a dammed demand during the pandemic”, said the coordinator of National Accounts at the IBGE, Rebeca Palis.

The only segment of Services that was in the negative field, Commerce retreated -0.1% in the third quarter, while Construction, which is among the industrial activities, increased 1.1% in the period.

Agriculture fell. After three quarters with positive rates, Agriculture and Livestock decreased by 0.9%, reaching an accumulated drop of 1.5% in the year.

“The retraction is explained by the crops that have a relevant harvest in this quarter and had a drop in production, as is the case of sugarcane and cassava. In the year, the sector’s performance is linked to the results of soybeans, our main crop, whose production was affected by climate problems”, says Rebeca.

Household consumption slows down. On the expenditure side, the increase in GDP was driven by household consumption, which grew 1%, amidst an improvement in the country’s job market and a greater number of Brazilians with income. There was, however, a slowdown in the advance of consumption. In the 1st and 2nd quarters, increases were 0.9% and 2.1%, respectively.

Government consumption increased by 1.3% and investments increased by 2.8%, from the second to the third quarter.

Also high compared to the 3rd quarter of 2021. Compared to the third quarter of 2021, GDP grew by 3.6%.

Agriculture rose 3.2%, and Industry, 2.8%. The industrial sector, in turn, was impacted mainly by Electricity and gas, water, sewage, waste management activities (11.2%), benefited by green tariff flags.

Other outstanding activities in the sector were Construction (6.6%) and Transformation industries (1.7%).

In the same comparison, Services increased by 4.5%, with emphasis on Other service activities (9.8%) and Transport, Storage and mail (8.8%) and Information and communication (6.9%).

Revised 2021 result🇧🇷 The IBGE also released that GDP growth for 2021 was revised from 4.6% to 5%.

What is GDP and how is it calculated?

GDP represents the performance of a country’s economy during a certain period. Measured by the IBGE in Brazil, it is published every three months.

To arrive at the result and avoid distortions caused by double counting, the IBGE only measures the flow of new final goods and services. Therefore, it is incorrect to say that GDP is the total wealth existing in a country.

If a country produces R$ 100 of wheat, R$ 200 of wheat flour and R$ 300 of bread, for example, its GDP will be R$ 300, since the values ​​of flour and wheat are already included in the value of bread .

As the values ​​considered for the calculation are those that reach the consumer, the GDP also considers taxes on commercialized products.

Source: Uol