Brazil Quarterly GDP Down 0.6 Percent In Q2 2014
Finance Minister Mantega states that the causes of a poorer performance seen in the first half of 2014 will not be repeated in the second half
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BRASILIA - August 29, 2014 (www.investorideas.com newswire) The Federative Republic of Brazil announced today that its 2014 second quarter (Q2) gross domestic product (GDP) decreased by 0.6 percent compared to the first quarter (Q1) of 2014 in seasonally adjusted terms (-2.3 percent on an annualized basis), according to data released by the Brazilian Institute of Geography and Statistics (IBGE). National production of goods and services in Q2 2014 amounted to R$ 1.271 trillion (approximately US$ 571.0 billion, using the Q2 2014 average exchange rate).
"The global economy has not performed as expected, and has failed to deliver the positive impacts we anticipated for the Brazilian economy. As a result, exports were not able to increase as needed,” said Finance Minister Guido Mantega. He added that domestic factors have also affected the Brazilian economy, including the drought that has elevated the price of electricity and food items, a lack of credit caused by restrictive monetary policy, and the significantly lower number of business days in the first half of 2014.
"The underlying causes of the poorer performance seen in the first half of 2014 will not be repeated in the second half, and therefore we will have a better second half of the year. Brazil has already started the third quarter on a positive trend, and the year will end better than it started,” said Minister Mantega.
Today's data shows that the agricultural sector increased by 0.2 percent in Q2 2014 compared to the first quarter of the year. The services sector decreased by 0.5 percent and the industrial sector decreased by 1.5 percent.
Government consumption decreased by 0.7 percent in Q2 2014, household consumption grew 0.3 percent, and gross fixed capital formation decreased by 5.3 percent.
2Q 2014 Year-Over-Year Performance
Brazil's economy recorded a 0.9 percent year-over-year decrease for Q2 2014, compared to Q2 2013. The agricultural sector remained flat, the industrial sector decreased by 3.4 percent, and the services sector increased by 0.2 percent.
Over the same period, Brazil recorded an 11.2 percent decrease in gross fixed capital formation, household consumption increased by 1.2 percent, and government consumption expanded by 0.9 percent.
Four Quarter Performance
The Brazilian economy grew by an accumulated 1.4 percent in the four quarters ending in Q2 2014, compared to the previous four quarters. Over this period, the agricultural sector grew by 1.1 percent, the services sector expanded by 1.6 percent, and the industrial sector increased by 0.5 percent, according to the new GDP data released today.
During the same period, household consumption increased by 2.1 percent, government consumption expanded by 2.2 percent, and gross fixed capital formation decreased by 0.7 percent.
The Brazilian Institute of Geography and Statistics (IBGE) is the independent and autonomous agency responsible for statistical, geographic, cartographic, geodetic and environmental information in Brazil.
The Secretariat for Social Communication (SECOM) of the Federative Republic of Brazil is responsible for coordinating the public relations activities for the government of Brazil. The official website of the Brazilian State is: www.brasil.gov.br. The official social media accounts for SECOM International are on Facebook and Twitter at http://www.facebook.com/BrazilGovNews/ and twitter.com/BrazilGovNews.
US PRESS CONTACT:
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This material is distributed by Fleishman-Hillard Inc. on behalf of the Secretariat for Social Communication of the Presidency of Brazil. Additional information is available at the Department of Justice, Washington, D.C.
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