Brazil GDP Monitor reveals 1% growth in 2017
After dropping for two consecutive years, Brazil’s economy started growing once again, at a rate of 1.0% in 2017, as shown by the GDP Monitor. Published by FGV’s Brazilian Institute of Economics (IBRE), the indicator provides a monthly estimate of the Brazilian GDP based on volume and value. The indicator was created to provide society with a monthly GDP gauge, based on the same methodology of IBGE’s National Accounts.
“On the supply side, this result is attributed to the outstanding performance of agriculture, the recovery of the industrial sector, and a service sector that surprisingly yielded positive results for the 2017 GDP. On the demand side, household consumption and exports were the main components that contributed to the positive GDP. Gross fixed capital formation, despite still negative (-1.9%), stands out for its recovery in the year, considering its 10.3% drop in 2016,” said Claudio Considera, Coordinator of FGV’s GDP Monitor.
From a supply standpoint, most activities recovered compared to 2016, and the agriculture and mineral extraction activities recorded the highest growth (12.8% and 4.5%, respectively). The 1.8% growth in transformation is 7.3 percentage points (p.p.) higher compared to 2016. The same is true for the trade and transport activities, which grew 8.0 p.p. and 7.9 p.p. compared to 2016, respectively.
From a demand perspective, the items with highest recovery rates in 2017 were imports and gross fixed capital formation. After dropping 10.2% in 2016, imports grew 4.9% in 2017. And gross fixed capital formation was 8.4 p.p. higher than in 2016, despite the still negative variation in 2017 (-1.9%).
In the quarterly overview, based on the seasonally adjusted series, the GDP grew 0.2% in the fourth quarter, compared to the previous quarter. In the monthly series, the variation in December was 0.9%, compared to November.
The complete results are available on the website.