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In the first quarter of 2023, the Gross Domestic Product (GDP) grew 1.9% in relation to the previous quarter, in the seasonally adjusted series, according to data from the Brazilian Institute of Geography and Statistics (IBGE) released this Thursday (1st) Front in the same quarter of 2022, GDP grew by 4.0%. In the last four quarters, GDP rose 3.3% compared to the four immediately previous quarters.
In current values, GDP in the first quarter of 2023 totaled R$ 2.6 trillion, with R$ 2.2 trillion referring to Value Added (VA) at basic prices and R$ 317.1 billion to Product Taxes net of Subsidies.
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In the first quarter of 2023, the investment rate was 17.7% of GDP, below that observed in the same period of 2022 (18.4%). The savings rate was 18.1%, above the rate recorded in the same period in 2022 (17.4%).
GDP increases by 1.9% in relation to the immediately previous quarter
GDP grew by 1.9% when comparing the first quarter of 2023 against the fourth quarter of 2022, in the seasonally adjusted series. There was an increase in Agriculture (21.6%) and in Services (0.6%) and stability in Industry (-0.1%).
Among industrial activities, there was a drop in Construction (-0.8%) and Manufacturing Industries (-0.6%). Positive performances occurred in Extractive Industries (2.3%) and Electricity and gas, water, sewage, waste management activities (1.7%).
In Services, there was growth in Transport, storage and mail (1.2%), Financial intermediation and insurance (1.2%) and Administration, health and public education (0.5%), in addition to positive changes in Commerce (0.3%) and Real estate activities (0.3%). On the other hand, there were falls in Information and communication (-1.4%) and in Other services (-0.5%).
From an expenditure perspective, Household Consumption Expenditure (0.2%) and Government Consumption Expenditure (0.3%) showed positive variations, while Gross Fixed Capital Formation (-3.4%) declined.
In the external sector, Exports of Goods and Services had a negative variation of 0.4% while Imports of Goods and Services fell 7.1% compared to the fourth quarter of 2022.
GDP grows 4.0% compared to the 1st quarter of 2022
When compared to the same period in the previous year, GDP grew by 4.0% in the first quarter of 2023. Value Added at basic prices increased by 4.1% and Taxes on Products Net of Subsidies increased by 3.0%.
Agriculture grew 18.8% compared to the same period of the previous year. This result can be explained by the good performance of crop products with a relevant harvest in the first quarter and by productivity. According to the Systematic Survey of Agricultural Production (LSPA/IBGE), soybeans, the main crop, showed productivity gains and significant growth in annual production, estimated at 24.7%. With the exception of rice (-7.5%), other crops with a relevant harvest in this quarter also showed growth in annual production and productivity gains, such as corn (8.8%), tobacco (3.0%) and cassava (2.1%) .
Industry rose 1.9%. Extractive Industries (7.7%) recorded the best result, being affected by the increase in both oil and gas and iron ore extraction. There was also emphasis on the activity of Electricity and gas, water, sewage, waste management activities (6.4%) with the improvement of water conditions. Construction (1.5%), in turn, had its tenth consecutive increase, although slowing down, as the sector's real wage bill grew, but typical construction inputs are falling in relation to the previous year.
The Manufacturing Industry (-0.9%) was the only one with a negative result, its result being influenced mainly by the drop in the manufacturing of chemical products; metallurgy; manufacturing of wooden products; manufacturing of non-metallic mineral products and machinery and equipment.
The added value of Services grew by 2.9% compared to the same period of the previous year. All of its activities increased: Information and communication (6.8%), Transport, storage and mail (5.1%), Financial, insurance and related services activities (4.6%), Other service activities (4.3%) , Real Estate Activities (2.8%), Commerce (1.6%) and Administration, defense, public health and education and social security (0.4%).
In the first quarter of 2023, Household Consumption Expenditure recorded an increase of 3.5%. This result was influenced by the increase in the real wage bill, the increase in credit and inflation at lower levels. Government Consumption Expenditure also increased (1.2%). Furthermore, the variation in inventories grew by 24% in nominal terms, in this first quarter compared to the same period of the previous year, also contributing positively to growth.
Gross Fixed Capital Formation increased by 0.8% in the first quarter of 2023. The growth in imports of capital goods and the positive performance of construction offset the decline in domestic production of capital goods.
In the external sector, Exports of Goods and Services increased by 7.0%, while Imports of Goods and Services increased by 2.2% in the first quarter of 2023. Among exports of goods, those sectors with the greatest positive contribution were: extraction oil and gas; food products; mineral extraction; petroleum derivatives and services. In terms of imports of goods, the increase was mainly due to: petroleum derivatives; extraction of non-metallic minerals; automotive industry and services.
GDP grows 3.3% accumulated in four quarters
The accumulated GDP in the four quarters ending in March 2023 showed growth of 3.3% in relation to the four immediately previous quarters. This rate resulted from an increase of 3.4% in Value Added at basic prices and 2.7% in Taxes on Products Net of Subsidies. The result of Value Added in this type of comparison resulted from the following performances: Agriculture (6.0%), Industry (2.4%) and Services (3.9%).
All industrial activities showed growth: Electricity and gas, water, sewage, waste management activities (9.4%), Construction (5.3%), Manufacturing Industry (0.6%) and Extractive Industries (0.5%).
In Services, there were positive results in all activities: Other service activities (9.1%), Transport, storage and mail (7.5%), Information and communication (5.7%), Real estate activities (2.8%), Activities financial, insurance and related services (1.8%), Commerce (1.8%), Administration, defense, public health and education and social security (0.7%).
In the analysis of demand, Household Consumption Expenditure, Government Consumption Expenditure and Gross Fixed Capital Formation grew by 4.5%, 0.9% and 2.7%, respectively. In terms of the external sector, Exports of Goods and Services grew by 5.2%, while Imports of Goods and Services increased by 4.2%.
Investment Rate was 17.7% in the 1st quarter
The investment rate in the first quarter of 2023 was 17.7% of GDP, remaining below that observed in the same period of the previous year (18.4%). The savings rate was 18.1% in the quarter (compared to 17.4% in the same period in 2022).
The Financing Need reached, in the first quarter of 2023, R$ 48.3 billion against R$ 69.8 billion in the same period of the previous year. The reduction in the Financing Need is mainly explained by the increase of R$ 27.1 billion in the positive result of the External Balance of Goods and Services and the increase of R$ 3.5 billion in the net remittance of Property Income.
Source: datagro
