Keeping the growth pace of the previous year, Brazilian GDP rises 1.1% in 2018

As expected, figures confirm the second consecutive year of economic growth, albeit weak, in Brazil.

Source: Exame Portal

According to IBGE data, this Thursday (28), Brazil's Gross Domestic Product (GDP) grew 0.1% in the 4th quarter of 2018 compared to the previous quarter.

As a result, the increase in 2018 was 1.1%, the same result as the previous year, bringing the GDP to a total of BRL 6.8 trillion.


After the sharp declines in GDP of 3.5% in 2015 and 3.3% in 2016, the result met economists' expectations and shows a modest recovery in the country's Gross Domestic Product. 


While the second quarter was marked by the truck drivers' strike, at the end of the year there was an impact from factors such as electoral uncertainty and the worsening crisis in Argentina.


The figures for the first quarter of 2019 have been average and the forecast for the year is that growth will accelerate to a level between 2% and 2.5%.


Comparison period                  GDP


4th Quarter 2018 / 3rd Quarter 2018                      0.1%


4th Quarter 2018 / 4th Quarter 2017                     1.1%


Current values in the year (R$)          6.8 trillion


                        Table: Exam Portal    


sectors
The service sector grew in all its activities, becoming the biggest contribution to growth in 2018, with a rate of 75.8%, advancing 1.3% in the Brazilian economy.


Agriculture was approximately stable (0.1%), but was based on a record harvest in 2017.


The industrial sector fell in the last quarter, but in the balance of the year it grew 0.6%. The highlight was the activity of electricity and gas, water, sewage and waste management and follows the fragility of the construction sector.

 

Comparison period               Agropec.     Industry     services


4th Quarter 2018 / 3rd Quarter 2018                 0.2%           -0.3%         0.2%


4th Quarter 2018 / 4th Quarter 2017                2.4%        -0.5%          1.1%


2018 over 2017                            0.1%          0.6%           1.3%

Current values in the year (R$)     297.8 billion       1.3 tri         4.3 tri

 

                        Table: Exam Portal


On the demand side, government consumption was stable while household consumption increased by 1.5%.


According to the IBGE, this can be explained by factors such as the benign behavior of indicators such as inflation, interest, credit, employment and income throughout the year.


Link: https://exame.abril.com.br/economia/pib-do-brasil-cresceu-11-em-2018-o-mesmo-ritmo-do-ano-anterior/?fbclid=IwAR3J7wLFfJ9EX5eYKCNOadX5swsiN6b2YgFpgEoOhJioryJjJbl_-GeX6UY