INDICATORS: GDP-FGV monitor points to 1.6% growth in economic activity in the first quarter of 2023

The expressive performance of agriculture, at 10.9%, contributed to the growth of the economy in relation to the same quarter of last year. In addition to agriculture, the service sector stands out as it contributes to boosting the economy, with growth in practically all its activities.

In agriculture, soy was the category’s main growth component. However, a large part of soybean production takes place in the first quarter of the year, which may be an indication of a possible challenge in maintaining the same agricultural productivity throughout the year. This challenge also extends to the growth of the economy as a whole, often anchored in agricultural production.

Household consumption also grew in the first quarter, by 4.7%. In addition to it, gross fixed capital formation, understood as real investment in the economy, grew by 0.2% in the period. However, this growth is considered weak and is due to the 3.4% retraction of the machinery and equipment component, since other sectors of gross fixed capital formation grew, such as construction.

The investment rate, as the ratio between Gross Fixed Capital Formation and Gross Domestic Product can be understood, was considered below the average investment rate since the 2000s, which is at the level of 18%. In the first quarter of 2023, the investment rate in the economy was 15.7%.

Exports of goods and services, on the other hand, grew by 5.7%, largely driven by mineral extraction products and services. Imports, after 8 months of growth, dropped by 2.1%, mainly due to the drop in agricultural products.

The above data comes from the GDP-FGV Monitor and monthly precedes the official results of the so-called Quarterly National Accounts released by the IBGE. The monitor estimates variables that make up the Brazilian GDP, in volume and value.