Brazilian economy grew 0.1% in 2014

The Brazilian economy grew 0.1% in 2014, compared to the previous year. The Gross Domestic Product (GDP) totaled $1.729 trillion in the year, the Brazilian Institute of Geography and Statistics (IBGE) reported today (Mar. 27).

In the fourth quarter of 2014, GDP grew 0.3% compared to the third previous quarter, but decreased slightly (0.2%) compared to the last quarter of 2013.

The 0.1% growth in 2014 was driven chiefly by the services sector, which saw a 0.7% increase, and agriculture, up 0.4%. But industry weighed it down closing 2014 with a 1.2% decline.

Demand increased 0.9% in household consumption and 1.3% in government consumption. Gross fixed capital formation (net investment) fell 4.4% in the year. Declines were also seen in exports (1.1%) and imports (1%).

The results for 2014 were calculated based on a new, international methodology, which IBGE has also used to revised its GDP growth figures for 2012 (from 1% to 1.8%) and 2013 (2.5% to 2.7%).

Translated by Mayra Borges