Brazil’s Economy Grows by 3.4% in 2024, Marking Steady Recovery

In 2024, Brazil’s economy grew by 3.4%, the largest increase since 2021, marking four continuous years of growth. The GDP reached BRL 11.7 trillion. Key contributors included services and industry, while agriculture declined due to climate factors. Household spending rose significantly, alongside a historic low in unemployment at 6.6%.

In 2024, Brazil’s economy achieved a significant growth rate of 3.4%, marking the largest expansion since 2021, as reported by the Brazilian Institute of Geography and Statistics (IBGE). This expansion led to a Gross Domestic Product (GDP) total of BRL 11.7 trillion (approximately USD 2 trillion). The growth trend has persisted for four consecutive years, with previous years showing GDP increases of 3.2% in 2023, 3% in 2022, and 4.8% in 2021, following a 3.3% contraction in 2020 due to the COVID-19 pandemic.

Sector-wise, the services and industrial sectors were the primary contributors to the GDP growth, achieving increases of 3.7% and 3.3%, respectively, when compared to 2023. Contrarily, agriculture suffered a decline of 3.2%, primarily driven by adverse climatic conditions affecting critical crops such as soybeans, which fell by 4.6%, and corn, which dropped by 12.5%. The construction sector within the industrial category excelled, reporting a rise of 4.3%.

Analyzing GDP from the consumption perspective, household expenditures saw a commendable boost of 4.8%. Rebeca Palis, the national accounts coordinator at IBGE, attributes this positive trend to various factors including government income transfers, improvements in the employment market, and lower average interest rates when compared to 2023.

By the close of 2024, Brazil recorded an unprecedented unemployment rate of 6.6%, the lowest in the nation’s history. Additionally, GDP per capita reached BRL 55,247.45 (USD 9,600.40), reflecting a 3% rise from 2023 when adjusted for inflation.

In summary, Brazil’s economy demonstrated robust growth in 2024, with a GDP increase of 3.4%, primarily driven by the services and industrial sectors. Despite a decline in agriculture, rising household consumption, and record-low unemployment rates showcase positive economic trends. Overall, Brazil’s economic performance is marked by significant resilience and recovery as it executes various strategic fiscal measures.

Original Source: anba.com.br