PIB construction falls by 1 % in the first quarter of the year
The Gross Domestic Product (GDP) in the construction sector fell by 1.0% in the first quarter 2016 compared to the previous quarter, according to survey released on Wednesday (1st) by the Brazilian Institute of Geography and Statistics (IBGE). Among the industrial sub-sectors studied economics, however, the building had a smaller drop in mining, 1.1%. The industry generally fell 1.2% in the period.
Compared to the first quarter of 2015, the retraction presented by GDP for the construction was 6.2%. Fall is also lower the mineral extraction, which stood at 9.6%; and industry, 7.3%. In relation to the accumulated four quarters, however, the fall was 7.1%, this time most of the mining, which stood at -0.5%, and the industry at -6.9%.
The overall PIB of Brazil decreased 0.3% in the quarter. Regarding economic sectors, agriculture had negative change of 0.3%; industry, 1.2%; and services, 0.2%. The total value generated was R $ 1.47 billion in the quarter, 5.4% lower in relation to GDP in the same period of 2015. On this basis of comparison, it is the eighth consecutive negative result. Accumulated in four months, the value was -4.7%.
For the vice president of SindusCon-SP Economy, Eduardo Zaidan, there will be improvements in the short-term sector. "This scenario is the result of political instability, coupled with the lack of investor confidence in the economy. In the coming months we will not have significant changes as new measures are slow to take effect", he says. "The government is main task is to reverse this economic framework this year. And that take effective measures to make it happen". The union also foresees a decrease in construction GDP for this year.
The organization says that trend is that the comparison with a depressed base (as the same period last year) contributes to a lower rate accumulated over the year. "The worsening compared to the previous quarter shows that the activity continues shrinking , which has been confirmed by other indicators such as employment, physical production of inputs for construction and retail trade of materials", says Zaidan .
Gross fixed capital formation shrank 17.5 % over the same quarter last year. "This is the most worrying in terms of future health of the economy", says Zaidan. "The government should take all possible actions to improve this point , because this is the main indicator that we will not have growth ahead. The construction is a crucial sector to reverse this situation", he adds.