Brazil’s GDP Grows 5.4% While Investments Jump 13%

Tractor in Brazilian plantation Gross Domestic Product (GDP) grew 5.4% in 2007 in Brazil. Total value was 2.6 trillion reais (US$ 1.5 trillion) according to information from the Quarterly National Accounts of the Brazilian Institute for Geography and Statistics (IBGE), being disclosed this Wednesday, March 12.

The result is the highest since 2004, when the GDP, i.e. the sum of all wealth produced in the country, grew 5.7%. The growth rate confirms the expectation of the minister of Finance, Guido Mantega, that the economy would grow at a rate above 5%.

From the third to the fourth quarter last year, the GDP grew 1.6%. According to the IBGE, in 2007 agriculture (5.3%) performed best, followed by industry (4.9%) and services (4.7%).

The growth of agriculture was mostly driven by the crop, the highlights being wheat (62.3%), vegetable cotton (33.5%), corn beans (20.9%), sugarcane (13,2%) and soy (11.1%).

The products that saw a reduction in the crop were coffee beans (-16.7%), rough rice (-3.7%) and beans (-4.4%).

Growing Investment

Investment in the country in 2007 grew 13.4%, the highest annual rate since 1996, when the Brazilian Institute for Geography and Statistics (IBGE) started conducting surveys. Data from the Quarterly National Accounts, show that family consumption expenditures increased for the fourth year in a row.

Last year the increase was 6.5%, favored by the 3.6% rise in workers' wage mass. Public administration consumption expenditures grew 3.1% in 2007. Exports rose 6.6%, and imports, 20.7%. According to the IBGE, since 2006, exports have been growing at a lower rate than imports.

ABr

Tags:

Ads

You May Also Like

Lula or Cardoso? Who’s Brazil’s President?

In all the key policy areas—land reform, environmental protection, affirmative action, and foreign policy—Lula’s ...

For Brazil’s Lula South America Lives a Different Reality

Following an encounter with the President of Argentina, Néstor Kirchner, and the President of ...

Brazilian singer Virginia Rodrigues

Brazil’s Virginia Rodrigues in NY Singing to the Gods

The story of the early days of the career of this Brazilian singer is ...

Brazil’s New Racial Equality Law Is Watered Down. But Blacks Are Not Complaining

Although there are different evaluations of how much impact the newly House-approved Statute of ...

Inflation Fear Leads Brazil Central Bank to Raise Interest Rates by Steep 0.75%

The central bank of Brazil raised interest rates by 0.75% to 13% on Wednesday, ...

LETTERS

Rich and powerful to the point of arrogance, when it cannot beat the competition, ...

Communities in Brazil Are Printing Money. It’s Legal and Worth More than the Real

Palma, Maracanã, Castanha, Cocal, Guará, Girassol, Pirapire, Tupi. The list of various names includes ...

Brazil’s Pantanal, a Biosphere Reserve, in Danger of Disappearing in 45 years

At an average annual devastation rate of 2.3%, the Pantanal, the world’s largest flood ...

Brazil’s Micro Credit Program a Hit. Default: 1.2%.

Within the scope of a new credit program for productive activities, in Brazil, established ...

Brazil Imports Increase and Trade Surplus Falls Dramatically

The Brazilian trade surplus – exports minus imports – in the first week of ...