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.

The seasonally adjusted gross domestic product grew 0.7% quarter-on-quarter in the fourth quarter. This follows a 0.4% expansion in the third quarter, revised from 0.5% rise reported initially. Economists had forecast a 0.8% increase.

Year-on-year, the GDP growth eased to 5% from 6.7% in the September quarter, while economists had forecast a slowdown to 5.2%. This was the weakest year-on-year figure recorded in all four quarters of 2010.

In 2010, the economy maintained a steady growth rate of 7.5% compared to 2009 as expected. This was the highest annual rate since 1986, the statistical office said.

Value added by industry fell 0.3% sequentially during the quarter after adjusting to seasonal variations. Agricultural output declined 0.8%.

Investment recorded a slower growth of 0.7% in the final quarter, while rise in private spending accelerated to 2.5%.

Exports grew 3.6% from the third quarter, while imports recorded 3.9% rise. Annually, exports and imports expanded 13.5% and 27.2% respectively.

Brazilian Economy Expands 0.7% in Q4, RTT News
3/3/2011 1:51:14 PM