It’s official: GDP growth in 2010 was 7.5%

The government statistical bureau (“IBGE”) announced this morning that Brazilian GDP growth in 2010 was 7.5%, compared to 2009 [in its report the IBGE admitted that the bar was low after 2009 GDP fizzled due to the Great Recession and came in at –0.6%]. The 2010 GDP growth is the highest GDP growth since 1986 (when it also was 7.5%).

In nominal terms, the value of all of Brazil’s goods and services in 2010 was R$3.675 trillion. Growth, says the IBGE, was boosted by an average rise of 6.7% in so-called basic prices (although official inflation was less) and an increase of 12.5% in taxes. Meanwhile, industrial output jumped 10.1%, boosted by strong performances in mining – commodities – (up 15.7%) and civil construction (up 11.6%).

Production in the farm sector – more commodities – rose 6.5%, led by soy (up 20.2%), wheat (up 20.1%), coffee (up 17.6%), corn (up 9.4%) sugarcane (up 5.7%) and oranges (up 4.1%).
The services sector rose 5.4%, led by the financial and insurance segments. The commercial sector had solid growth of 10.7%.

The IBGE says that family consumption rose for the seventh consecutive year; in 2010, it was up 7%. Government procurement was up 3.3%.
Gross fixed capital formation in 2010 rose a sharp 21.8%, the highest annual result since the IBGE began keeping records in 1996.

In foreign trade, exports rose 11.5% and imports were up 36.2%.