Brazil’s Economy Sees 3.4% Growth in 2024, Driven by Household Spending

Brazil’s economy grew by 3.4 percent in 2024, driven by strong household spending, industries, and services. Agriculture faced a decline, but exports increased significantly. President Lula optimistic about growth, while GDP per capita rose, emphasizing the need to tackle inflation.

Brazil’s economy has shown significant growth of 3.4 percent in 2024, according to the Brazilian Institute of Geography and Statistics (IBGE). This growth is primarily attributed to robust household spending, which increased by 4.8 percent compared to the previous year. Additionally, the industrial and services sectors contributed positively, expanding by 3.3 percent and 3.7 percent, respectively.

Conversely, the agricultural sector experienced a decline of 3.2 percent in 2024 due to adverse harvest conditions. Despite this, exports grew by 2.9 percent, while imports surged by 14.7 percent, influenced by heightened demand for chemicals, machinery, and motor vehicles.

President Luiz Inacio Lula da Silva expressed optimism regarding the nation’s economic trajectory, referring to 2025 as “the year of the harvest.” He emphasized that a growing GDP equates to increased employment and enhanced financial resources for Brazilian citizens.

Additionally, Minister of Planning and Budget, Simone Tebet, noted that the GDP per capita had reached 55,247.45 reais (9,558.4 U.S. dollars), marking a 3.0 percent increase. She highlighted the ongoing challenge of addressing inflation to lower food prices for the populace. Financial analysts predict a GDP growth of 2.01 percent for Brazil in 2025, while the government has a more optimistic projection of 2.3 percent.

In summary, Brazil’s economy has demonstrated robust growth in 2024, with substantial contributions from household spending and the industrial sectors. Although agriculture faced challenges, export increases and a positive GDP per capita reflect an encouraging economic outlook. The government and financial analysts share optimistic projections for continued growth in 2025, despite the need to address inflation issues.

Original Source: english.news.cn