23
GDP Evolution – Quarter on Quarter Percentage Change 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0%
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
Source: Brazilian Institute for Geography and Statistics (IBGE)
The 25.3% appreciation of the real over the US dollar made Brazilian exports less competitive, which, coupled with the credit crunch and the downturn in the major economies worldwide, affected the Brazilian trade balance. For the first time since 2002, the trade flow was lower in relation to the previous year. Nevertheless, the trade balance was positive by
US$ 24.6 billion at the close of 2009, 1.4% less than in 2008. According to the Ministry of Development, Industry and Foreign Trade, Brazilian exports totaled US$153.0 billion, down 22.7% year-over-year. That was the sharpest drop since those data started being recorded in 1950.