GDP down 0.6% in second quarter of 2014

Brazil's gross domestic product (or GDP, the total amount of all goods and services produced in the country) was reported to drop by 0.6% in the second quarter of 2014 against the first three months of the year, according to the Brazilian Institute of Geography and Statistics (“IBGE”). The goods and services produced totaled $565.4 billion.

In the 12-month period (July 2013 to June 2014) the accumulated growth rate stands at 1.4%. Compared to the second semester of the previous year, the reduction was 0.9%.

The best outcome this quarter was seen in the agricultural sector, which is up 0.2% against the previous quarter. In the same period, the GDP  for industry shrank 1.5%, and the counterpart for services 0.5%.

The only industrial subsector to present a positive result was mineral extraction, with 3.2%. Among the areas with the most significant declines are the manufacturing industry (-2.4%), construction (-2.9%), and electricity and gas, water, sewers and urban sanitation (-1%).

The fall in services was driven by a reduction in trade activities (-2.2%).

Translated by Fabrício Ferreira