By Nilson Brandão Junior, The State of S. Paulo - 01/07/2005

The Brazilian Gross Domestic Product (GDP) totaled R $ 438,6 billion in the first quarter of the year, compared to R $ 395,682 billion in the same period in 2004, the Brazilian Institute of Geography and Statistics (IBE) reported yesterday. Discounting inflation, growth was 2,9%.

During this period, the investment rate stood at 19,9%, the highest rate for a first quarter since 2001. But still below the best result last year, at 20,9%, in the third quarter.

The IBGE also reported that, with the revision of GDP growth in 2004, from 5,2% to 4,9%, announced in May by the institute, the value of the country's total production shrinks by R $ 2 billion, from R $ 1,769 trillion to R $ 1,767 trillion.

The correction (motivated by a review of the performance of the communications sector) also led to a new estimate of an increase in per capita income in the year, from 3,7% to 3,4%, a rate that remains the highest annual since 1994. As a result, the nominal value of per capita income also decreased, from R $ 9.973,00 to R $ 9.729,00.

IBGE's quarterly account manager, Rebeca Palis, explains that the value of investments continues to grow compared to the same period in 2004, but at a much lower rate. On this basis, investments grew 19,3% (discounting inflation) in the third quarter of 2004, 9,3% in the last quarter and 2,3% in the first quarter of 2005. In comparison with the immediately previous quarter, investment fell 3% in the first three months of 2005.

“Until the first quarter of 2004, growth was very much focused on external demand and at the end of the year domestic demand grew, increasing consumption and reducing savings a little,” explains Rebeca. Of the total GDP, R $ 49,9 billion was imposed on products. From the perspective of supply, the domestic product is divided as follows: services R $ 223,396 billion, industry R $ 151,724 billion and agriculture R $ 35,893 billion.

From the perspective of demand, the GDP for the first quarter is divided as follows: household consumption totaled R $ 252,5 billion, from the government, R $ 75,854 billion; investments, R $ 87,466 billion; exports of goods and services, R $ 75,613 billion; and imports, R $ 57,365 billion, plus R $ 4,539 billion in inventory changes.

The balance of exports increased from R $ 15,4 billion to R $ 18,2 billion in the first quarter of 2004 for the same period in 2005. This favorable result increased the financing capacity (comparable to the current account surplus) of the economy of January to March, which grew for the ninth consecutive quarter, to R $ 7,1 billion. The IBGE also identified that the remittance of interest and dividends increased (R $ 1,585 billion) in the first quarter), compared to the previous year. 1st quarter GDP totaled R $ 438 billion Growth compared to R $ 395,682 billion in the same period in 2004 was 2,9% ECONOMIC ACTIVITY Nilson Brandão Junior RIO The Brazilian Gross Domestic Product (GDP) totaled R $ 438,6 billion in the first quarter of the year, compared to R $ 395,682 billion in the same period in 2004, the Brazilian Institute of Geography and Statistics (IBE) reported yesterday. Discounting inflation, growth was 2,9%.

During this period, the investment rate stood at 19,9%, the highest rate for a first quarter since 2001. But still below the best result last year, at 20,9%, in the third quarter.

The IBGE also reported that, with the revision of GDP growth in 2004, from 5,2% to 4,9%, announced in May by the institute, the value of the country's total production shrinks by R $ 2 billion, from R $ 1,769 trillion to R $ 1,767 trillion.

The correction (motivated by a review of the performance of the communications sector) also led to a new estimate of an increase in per capita income in the year, from 3,7% to 3,4%, a rate that remains the highest annual since 1994. As a result, the nominal value of per capita income also decreased, from R $ 9.973,00 to R $ 9.729,00.

IBGE's quarterly account manager, Rebeca Palis, explains that the value of investments continues to grow compared to the same period in 2004, but at a much lower rate. On this basis, investments grew 19,3% (discounting inflation) in the third quarter of 2004, 9,3% in the last quarter and 2,3% in the first quarter of 2005. In comparison with the immediately previous quarter, investment fell 3% in the first three months of 2005.

“Until the first quarter of 2004, growth was very much focused on external demand and at the end of the year domestic demand grew, increasing consumption and reducing savings a little,” explains Rebeca. Of the total GDP, R $ 49,9 billion was imposed on products. From the perspective of supply, the domestic product is divided as follows: services R $ 223,396 billion, industry R $ 151,724 billion and agriculture R $ 35,893 billion.

From the perspective of demand, the GDP for the first quarter is divided as follows: household consumption totaled R $ 252,5 billion, from the government, R $ 75,854 billion; investments, R $ 87,466 billion; exports of goods and services, R $ 75,613 billion; and imports, R $ 57,365 billion, plus R $ 4,539 billion in inventory changes.

The balance of exports increased from R $ 15,4 billion to R $ 18,2 billion in the first quarter of 2004 for the same period in 2005. This favorable result increased the financing capacity (comparable to the current account surplus) of the economy of January to March, which grew for the ninth consecutive quarter, to R $ 7,1 billion. The IBGE also identified that the remittance of interest and dividends increased (R $ 1,585 billion) in the first quarter), compared to the previous year.