Brazil’s Economy Grows 3.4 Percent in 2024, Driven by Household Spending
Brazil’s economy recorded a growth of 3.4 percent in 2024, bolstered by a 4.8 percent increase in household spending. The industrial and services sectors also contributed positively, while agriculture faced a decline. Government projections hint at further growth in 2025, indicating a confident economic outlook.
In 2024, Brazil’s economy experienced a notable growth of 3.4 percent in comparison to the previous year, as reported by the Brazilian Institute of Geography and Statistics (IBGE). This growth was primarily attributed to robust household spending, which increased by 4.8 percent year-on-year. Furthermore, the industrial and services sectors also made significant contributions, expanding by 3.3 percent and 3.7 percent respectively.
Despite these gains, the agricultural sector faced challenges, shrinking by 3.2 percent due to unfavorable harvests. Additionally, the country saw a 2.9 percent rise in exports, while imports surged by 14.7 percent due to heightened demand for chemicals, machinery, and motor vehicles.
President Luiz Inacio Lula da Silva expressed optimism regarding the economic growth, proclaiming 2025 as “the year of the harvest.” He noted that a growing GDP translates into more job opportunities and increased income for Brazilian citizens. Meanwhile, Minister of Planning and Budget, Simone Tebet, remarked that the GDP per capita reached 55,247.45 reais (approximately 9,558.4 USD), marking a 3.0 percent increase, while underscoring the importance of addressing inflation to reduce food prices.
Looking forward, financial markets anticipate a GDP growth of 2.01 percent for 2025, while the government estimates a slightly higher rate of 2.3 percent. This outlook reflects confidence in the continued recovery and growth of the Brazilian economy moving into the coming year.
In summary, Brazil’s economy grew by 3.4 percent in 2024, largely driven by strong household expenditure and positive growth in industrial and service sectors. While agricultural output declined, the overall economic indicators are optimistic, with expectations for continued growth in 2025 as the government focuses on combating inflation. President Lula’s optimism combined with rising GDP per capita paints a hopeful picture for Brazil’s economic future.
Original Source: english.news.cn
