Agricultural sector GDP rises 5.7% in the first quarter

The Gross Domestic Product (GDP) of the agricultural sector grew the most in the first quarter of 2021, according to data released on June 1 by the Brazilian Institute of Geography and Statistics (IBGE). The sector registered a 5.7% growth compared to the fourth quarter of last year and a 5.2% growth compared to the same period in 2020.

The Brazilian GDP grew 1.2% in the first quarter of 2021 compared to the fourth quarter of 2020, in the seasonally adjusted series. In addition to Agriculture (5.7%), growth was also registered in the Industrial (0.7%) and Services (0.4%) sectors.

See the chart below compiled with DataLiner data for a history of Brazilian agribusiness imports and exports since 2018:

Brazilian Agribusiness Imports and Exports | Jan 2018 to Mar 2021 | WTMT

Graph source: DataLiner (click here to request a demo)

According to IBGE, the agricultural sector results can be explained mainly by the solid performance of some crop products in the first quarter, such as soybeans, tobacco, rice, and by productivity. “Cattle raising and the results of agribusiness exports in the first quarter are also factors. Despite the strong performance of these activities, the reduction in corn and cassava production negatively impacted”, explains José Garcia Gasques, Coordinator of Policy Assessment and Information at the Ministry of Agriculture, Livestock, and Food Supply.

In current values, GDP totaled R$2.048 trillion in this first quarter. The other segments had the following results: Agriculture R$ 208.8 billion, Industry R$ 348.6 billion, and Services R$ 1,195.9 trillion. The share of these activities in the total added value was 6.8% for Agriculture, 20.4% for Industrial, and 72.8% for Services.

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