GDP stands at -0.1% in the 2nd quarter of 2021 | News agency

The Gross Domestic Product (GDP) was stable (-0.1%) in the second quarter of 2021 (compared to the first quarter of 2021), in the seasonally adjusted series. Compared to the same quarter of 2020, GDP grew 12.4%. In the first half, the GDP accumulates a high of 6.4%. In the four quarters ending in June 2021, GDP grew by 1.8%. t

The Gross Domestic Product (GDP) was stable (-0.1%) in the second quarter of 2021 (compared to the first quarter of 2021), in the seasonally adjusted series. Compared to the same quarter of 2020, GDP grew 12.4%. In the first half, the GDP accumulates a high of 6.4%. In the four quarters ending in June 2021, GDP grew by 1.8%.

Comparison periodIndicators
GDPAGROPINDUSSERVGFCFCONS. FAMCONS. GOV
Quarter / quarter immediately previous (seasonally adjusted)-0.1%-2.8%-0.2%0.7%-3.6%0.0%0.7%
Quarter / same quarter of the previous year (no seasonal adjustment)12.4%1.3%17.8%10.8%32.9%10.8%4.2%
Cumulative in four quarters / same period last year (without seasonal adjustment)1.8%2.0%4.7%0.5%12.8%-0.4%-2.6%
YTD / same period last year (without seasonal adjustment)6.4%3.3%10.0%4.7%24.3%4.2%-0.4%
Current values ​​in the 2nd quarter (R$)2.1 trillion180.0 billion410.4 billion1.3 trillion390.2 billion1.3 trillion408.8 billion
Investment rate (GFCF/GDP) in the 2nd quarter of 2021 = 18.2%
Savings Rate (POUP/GFCF) in the 2nd quarter of 2021 = 20.9%

GDP remains stable (-0.1%) compared to the immediately previous quarter

GDP varied -0.1% when comparing the second quarter of 2021 against the first quarter of 2021, in the seasonally adjusted series. The biggest fall was in Agriculture (-2.8%), followed by Industry (-0.2%). On the other hand, Services grew by 0.7%.

Among industrial activities, the performance was driven by falls of 2.2% in Manufacturing Industries and 0.9% in the activity of Electricity and gas, water, sewage, waste management activities. These falls offset the 5.3% increase in Extractive Industries and 2.7% in Construction.

Main results of GDP at market prices
from the 2nd Quarter of 2020 to the 2nd Quarter of 2021 (%)
Fees (%)2020.II2020.III2020.IV2021.I2021.II
Accumulated over the year / same period of the previous year-5.6-5.0-4.11.06.4
Last four quarters / four immediately preceding quarters-2.1-3.4-4.1-3.81.8
Quarter / same quarter of the previous year-10.9-3.9-1.11.012.4
Immediately previous quarter/quarter (with seasonal adjustment)-9.07.73.11,2-0.1
Source: IBGE, Research Directorate, National Accounts Coordination

In Services, there were positive results in Information and communication (5.6%), Other service activities (2.1%), Trade (0.5%), Real estate activities (0.4%), Financial activities, insurance and related services (0.3%) and Transport, storage and mail (0.1%). There was also stability for Administration, defense, public health and education and social security (0.0%).

From an expenditure perspective, Gross Fixed Capital Formation (-3.6%) decreased, Household Consumption Expenditure (0.0%) was stable and Government Consumption Expenditure (0.7%) increased in in relation to the immediately previous quarter.

In the external sector, Exports of Goods and Services grew by 9.4%, while Imports of Goods and Services decreased by 0.6% compared to the first quarter of 2021.

GDP grows 12.4% compared to the 2nd quarter of 2020

When compared to the same period of the previous year, GDP grew by 12.4% in the second quarter of 2021. Value Added at basic prices increased by 11.7% and Taxes on Products Net of Subsidies increased by 16.8 %.

Agriculture grew 1.3% compared to the same period in 2020. This result can be explained mainly by the positive performance of some crop products with a relevant harvest in the second quarter, such as soybeans (9.8%) and rice (4.1%). On the other hand, there were decreases in the estimates of annual production of coffee crops (-21.0%), cotton (-16.6%) and corn (-11.3%). Estimates for Livestock and Forestry production pointed to a positive contribution for Agriculture in this quarter.

Industry grew 17.8%. In this context, the activity Manufacturing Industries recorded the best result, with a rise of 25.8%, mainly influenced by the advance in the manufacture of automotive vehicles; of other transport equipment; of machinery and equipment; and metallurgy.

The increase in the Construction activity (13.1%) was corroborated by the increase in the number of people employed in the sector and in the production of its typical inputs. This activity returned to having a positive result after five consecutive quarters of decline.

Extractive Industries presented a positive variation of 7.0%, as a result of the increase in the extraction of ferrous ores, since the extraction of oil and gas grew less in the period.

the activity of Electricity and gas, water, sewage, waste management activities increased by 6.7% due to greater activity in the economy as a whole, as the second quarter of 2020 was the peak of restrictions during the COVID-19 pandemic. This movement was able to compensate even the moment with more unfavorable tariff flags.

The Services sector advanced 10.8% compared to the same period of the previous year. The best results came from Transport, storage and mail (25.3%) and Commerce (20.9%). The other activities also showed positive results: Other service activities (16.1%), Information and communication (15.6%), Administration, defense, public health and education and social security (4.1%), real estate activities (3.5%) and Financial, insurance and related services activities (1.4%).

Household Consumption Expenditure grew 10.8%, explained by the base effect, as it is against the quarter with the greatest effects of the pandemic on the economy, in addition to government support programs for increasing credit to individuals. On the other hand, there was an increase in interest rates and, even with the increase in occupations in the economy, the wage bill, negatively affected by the increase in inflation, fell in relation to the second quarter of 2020.

Gross Fixed Capital Formation increased 32.9% in the second quarter of 2021, explained by the positive results of domestic production and imports of capital goods, in addition to construction. Government Consumption Expenditure rose 4.2% compared to the second quarter of 2020.

In the external sector, Exports of Goods and Services grew 14.1%, while the growth of Imports of Goods and Services was 20.2% in the second quarter of 2021. Among the exports of goods, the growth is explained, mainly due to the increase in agricultural products, the automotive industry, machinery and equipment and non-metallic minerals. On the other hand, imports grew mainly due to the increase in purchases of motor vehicles, machinery and equipment, steel and oil refining.

GDP grows 1.8% in the accumulated in four quarters

The GDP accumulated in the four quarters ending in June 2021 grew 1.8% in relation to the four immediately previous quarters. This rate resulted from a 1.6% increase in Value Added at basic prices and a 2.8% increase in Taxes on Products net of Subsidies. The result of Value Added in this comparison resulted from the following performances: Agriculture (2.0%), Industry (4.7%) and Services (0.5%).

Industrial activities with growth were Manufacturing Industries (8.1%) and Electricity and gas, water, sewage, waste management activities (3.5%) expanded. already the Construction (-0.7%) and the Extractive Industries (-0.2%) suffered contraction.

In Services, there were highs in: Business (5.7%), Information and Communication (5.4%), Financial, insurance and related services activities (3.9%), real estate activities (3.4%) and Transport, storage and mail (1.5%). The falls were: Other service activities (-4.9%) and Administration, defense, public health and education and social security (-2.5%).

In the analysis of expenditure, Gross Fixed Capital Formation (12.8%) had a positive change for the second consecutive quarter. On the other hand, Household Consumption Expenditure (-0.4%) and Government Consumption Expenditure (-2.6%) had negative variations.

In the external sector, Exports of Goods and Services increased by 2.4% and Imports of Goods and Services dropped by 1.7%.

First half has a 6.4% increase in GDP

The GDP in the 1st half of 2021 grew 6.4% in relation to the same period of 2020. On this basis of comparison, there was a positive performance for Agriculture (3.3%), Industry (10.0%) and Services ( 4.7%).

Investment Rate was 18.2% in the 2nd quarter

The investment rate in the second quarter of 2021 was 18.2% of GDP, above that observed in the same period of the previous year (15.1%). The savings rate was 20.9% in the second quarter of 2021 (compared to 15.7% in the same period in 2020).

The Financing Capacity reached R$ 81.4 billion against R$ 35.7 billion in the second quarter of 2020. The increase in the Financing Capacity is mainly explained by the increase in the amount of R$ 55.1 billion in the external balance of goods and services.