Brazil GDP Growth Rate

The Gross Domestic Product (GDP) in Brazil expanded 0.60 percent in the fourth quarter of 2012 over the previous quarter. GDP Growth Rate in Brazil is reported by the IBGE. Historically, from 1996 until 2012, Brazil GDP Growth Rate averaged 0.8 Percent reaching an all time high of 4.5 Percent in September of 1996 and a record low of -4.2 Percent in December of 2008. Brazil is the seventh largest economy in the world and the largest in Latin America. In recent years, the country has been one of the fastest-growing economies in the world primarily due to its export potential. The country’s trade is driven by its extensive natural resources and diverse agricultural and manufacturing production. Also, rising domestic demand, increasingly skilled workforce along with scientific and technological development, have attracted foreign direct investment. However, bureaucracy, corruption and weak infrastructure remain the biggest obstacles to economic development. This page includes a chart with historical data for Brazil GDP Growth Rate.

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Brazil GDP Growth Rate
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Brazil’s Economy: What is Next?
anna@tradingeconomics.com  |  12/11/2012 3:23:17 PM


Following six consecutive quarters of below-trend growth, Brazil’s economy seems to be slowly recovering. In the fourth quarter of 2012, the output expanded seasonally adjusted 0.6 percent compared to previous quarter and 1.4 percent compared to same quarter a year earlier. But without significant changes in the government policy, the growth may never return to levels seen before 2009.

Indeed, as the prices of commodities are stagnating, the exports can no longer support high rates of growth. Also, stimulating the consumption is not a way to go, as people will sooner or later need to repay their loans. That said, higher competitiveness, productivity and investment may be a long term solution. As such, some efforts have been already undertaken to help local businesses. Since October 2011, the Central Bank has slashed interest rates by 5.25 percentage points, to 7.25 percent. This move not only reduced the borrowing cost but also weaken the currency. Also, the payroll taxes for industry have been reduced. And the government is planning to cut electricity tariffs, which are one of the highest in the world and allow private companies to participate in the infrastructure projects. Yet, will focusing on industry without stimulating services and reducing the red tape and the role of government really help?

 

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Brazil GDP Grows 0.4% in Q4 Brazil GDP at market prices relative to the fourth quarter of last year grew by 0.3%, in the seasonally-adjusted series, compared with the figure in third quarter. Agriculture (0.9%) and services (0.6%) recorded increase, whereas industry (-0.5%) fell. 2012-03-06
Brazil's Economic Growth Slows Slightly Brazil's economic growth slowed slightly in the third quarter of 2010, as interest rate hikes and expiring tax cuts trimmed the expansion from the torrid pace recorded earlier this year. 2010-12-09
Brazil Economy Stalls in Q3 Brazil Economy failed to grow from the previous three months for the first time since the first quarter of 2009, as credit curbs, higher borrowing costs and budget cuts checked demand. The GDP grew 2.1 percent from the same period a year ago. 2011-12-06
Brazilian Growth Outstrips Forecast Brazil’s economy grew at an annualised rate of 8.9 per cent in the first half of 2010, defying expectations of a more significant slowdown in the second quarter and signalling that the country may beat its previous forecast of 7 per cent growth for the year. 2010-09-06
Brazil GDP Growth Slows in Q2 Brazil's economy expanded at a softer pace in the second quarter as a strong currency fueled a flood of cheap imports and industrial activity turned sluggish. 2011-09-06
Brazil's Long Term Growth Prospects Are Shaky After last year's 0.2% contraction, in the first quarter of 2010 Brazil's economy expanded 9% stimulated by renewed global demand for exports, expansion of credit and government incentives. Yet, the rapid pace of expansion may also lead to overheating of the economy, which can result in significant rise in consumer prices and endanger the long term development prospect 2010-06-10
Brazylian Economy Grows 1.3% in Q1 Brazil's economy expanded 1.3 percent in the first quarter from the previous three-month period, the national statistics agency said. 2011-06-03
Brazil's Economy Expanded 9.0% in First Quarter Brazil posted record economic growth in the first quarter, but surging domestic demand will likely force central bankers to ramp up interest rates to cool Latin America's largest economy. 2010-06-08
Brazilian Economy Expands 0.7% in Q4 Brazilian economy expanded slower than expected in the fourth quarter, though the rate of growth accelerated from the previous quarter, latest figures showed Thursday. 2011-03-03



GDP Growth Rate | Notes

The GDP Growth Rate shows a percentage change in the seasonally adjusted GDP value in the certain quarter, compared to the previous quarter. Because of climatic conditions and holidays, the intensity of the production varies throughout the year. This makes a direct comparison of two consecutive quarters difficult. In order to adjust for these conditions, many countries calculate the quarterly GDP using so called seasonally adjusted method. The Gross Domestic Product can be determined using three different approaches: the product, the income, and the expenditure technique, which should give the same result. In sum, the product technique sums the outputs of every class of enterprise. The expenditure technique works on the principle that every product must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures in buying products and services. The income technique works on the principle that the incomes of the productive factors must be equal to the value of their product, and determines GDP by finding the sum of all producers' incomes.






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