Brazilian Economy Grows 3.4% in 2024: Key Insights and Trends

Brazil’s economy grew by 3.4% in 2024, the highest since 2021. Key sectors included services and industry, while agriculture saw a decline. Household spending rose significantly, aided by government programs and a better job market. Unemployment hit a record low of 6.6%, and GDP per capita increased by 3%.

The Brazilian economy exhibited remarkable growth of 3.4% in 2024, marking the largest expansion since 2021, as reported by the statistics agency IBGE. This growth represents Brazil’s fourth consecutive year of economic improvement, culminating in a gross domestic product (GDP) of BRL 11.7 trillion (approximately USD 2 trillion). This growth trajectory follows increases of 3.2% in 2023, 3% in 2022, and a notable 4.8% in 2021, following a contraction of 3.3% in 2020 due to the COVID-19 pandemic.

The growth was primarily driven by the services and industrial sectors, which experienced substantial increases of 3.7% and 3.3%, respectively, compared to the previous year. Conversely, agriculture faced a downturn of 3.2%, significantly impacted by adverse climatic conditions affecting critical crops such as soybeans and corn, which fell by 4.6% and 12.5%, respectively. Within the industrial sector, construction stood out with a remarkable growth of 4.3%.

From a consumption perspective, household spending played a pivotal role in driving GDP growth, with an increase of 4.8%. Rebeca Palis, IBGE’s national accounts coordinator, attributed this growth to the positive impact of government income transfer programs, improving job market conditions, and lower average interest rates compared to 2023. The country concluded 2024 with a historic low unemployment rate of 6.6%.

GDP per capita also reflected positive trends, reaching BRL 55,247.45 (USD 9,600.40), representing a 3% inflation-adjusted increase from 2023. This growth indicates rising living standards and economic potential for the Brazilian population moving forward.

In conclusion, Brazil’s economy experienced significant growth of 3.4% in 2024, marking a continued upward trend over four consecutive years. The driving sectors included services and industry, while agriculture faced challenges due to climatic factors. Household consumption significantly contributed to this growth, alongside government and market improvements. The historical low unemployment rate further supports positive economic developments in Brazil, along with an increase in GDP per capita.

Original Source: anba.com.br