More Countries Release Third Quarter GDP Data

Four more countries--Brazil, Slovakia, Romania and South Korea  released third quarter gross domestic product data today.  Three, South Korea, Slovakia and Brazil showed slow downs in activity.  The economy of Brazil actually showed a slight decline.  Romania, on the other hand, more than doubled its rate of growth from the second to the third quarter, 0.85% vs. 1.78%. Quarter to quarter percent changes in real GDP for the four countries are shown in the attached chart.

In Brazil, the declines in private and government consumption and gross fixed capital formation  from the second to the third quarter were more than enough to offset the slight improvement in the negative balance of trade from -9,096 million reias in the second quarter to -8,320 million reias in the third quarter.  As a result, GDP declined 0.4% in the third quarter.  

In Slovakia increases in gross fixed capital formation and net exports of goods and services from the second to the third quarter were barely enough to offset the declines in consumption and inventory accumulation.  Slovakia managed to eke out a 0.4% increase in its GDP in the  third quarter.

In South Korea, consumption, gross fixed capital formation and net export of goods and services continued to rise between the second and third quarters, but inventory accumulation in real terms declined 850 billion chained 2005 won.  The result was a slight deceleration in the rate of growth from 0.89% in the second quarter to 0.81% in the third.

In Romania, consumption, gross fixed capital formation increased from the second to the third quarter and there was an improvement in the negative balance of trade.  However, the biggest factor in the overall  increase was the increase in inventory accumulation from 45 to 2224 million 2000 New Lei from the second to the third quarter.