Brazil Achieves 3.4 Percent Economic Growth in 2024

In 2024, Brazil’s economy grew by 3.4%, driven by a 4.8% increase in household spending. Industry and services also saw growth, while agriculture contracted by 3.2%. President Lula hailed the growth, calling 2025 “the year of the harvest,” and GDP per capita rose to 55,247.45 reais. Future projections indicate a growth decrease to around 2% for 2025.

Brazil’s economy experienced an impressive growth rate of 3.4 percent in 2024, as indicated by a report from the IBGE. This growth was significantly influenced by household spending, which saw an increase of 4.8 percent year on year. Additionally, the industrial sector expanded by 3.3 percent and the services sector by 3.7 percent, further contributing to the overall economic growth.

Despite the positive indicators, the agricultural sector faced challenges, recording a decline of 3.2 percent due to unfavorable harvests. Meanwhile, exports grew by 2.9 percent, while imports surged by 14.7 percent, primarily driven by heightened demands for chemicals, machinery, and motor vehicles.

Brazilian President Luiz Inacio Lula da Silva expressed optimism regarding the economic progress in 2024, designating 2025 as “the year of the harvest.” In a social media statement, he emphasized, “A growing GDP means more jobs and more money in the hands of Brazilians.”

Minister of Planning and Budget Simone Tebet noted that Brazil’s GDP per capita reached 55,247.45 reais (approximately 9,558.4 U.S. dollars), demonstrating a 3.0 percent increase. She underscored the importance of combating inflation to reduce food prices for citizens.

Looking ahead, financial markets anticipate a GDP growth rate of 2.01 percent for Brazil in 2025, whereas the government projects a slightly higher growth rate of 2.3 percent, indicating cautious optimism about the country’s economic trajectory.

In summary, Brazil’s economic growth in 2024 of 3.4 percent was propelled by substantial household spending and improvements in industry and services, despite a downturn in agriculture. President Lula’s acknowledgment of the growth reflects a positive outlook for job creation and economic prosperity. Additionally, the projected growth for 2025 remains promising, although inflation control remains a critical issue.

Original Source: ana.ir