Brazil’s economy grew by 3.4% in 2024, driven by strong household spending and contributions from the industry and services sectors. Agricultural sector faced a decline of 3.2%. Public officials express optimism for 2025’s growth amid inflationary concerns.
Brazil’s economy experienced a commendable growth of 3.4 percent in 2024 compared to the previous year, primarily fueled by robust household spending. The Brazilian Institute of Geography and Statistics (IBGE) reported that household expenditure surged by 4.8 percent year on year, significantly contributing to the nation’s Gross Domestic Product (GDP) increase. Furthermore, industries and services expanded by 3.3 percent and 3.7 percent, respectively, bolstering overall economic progress.
Despite the positive growth figures, the agriculture sector saw a contraction of 3.2 percent in 2024, largely attributed to poor harvest conditions. Exports were up by 2.9 percent; however, imports witnessed a substantial surge of 14.7 percent, driven mainly by increased demands for chemicals, machinery, and motor vehicles. This imbalance highlights key areas of economic dependence that warrant attention as Brazil moves forward.
Welcoming the economic upturn, Brazilian President Luiz Inacio Lula da Silva declared 2025 as “the year of the harvest”. He expressed optimism regarding GDP growth, stating, “A growing GDP means more jobs and more money in the hands of Brazilians”. Minister of Planning and Budget Simone Tebet emphasized the importance of combating inflation to reduce food prices, noting a 3.0 percent rise in GDP per capita, which reached 55,247.45 reais (approximately 9,558.4 U.S. dollars).
Looking ahead, financial markets anticipate a GDP growth rate of 2.01 percent for Brazil in 2025, while the government has set a slightly more ambitious forecast of 2.3 percent. Continued fiscal stability and investment in key sectors will be essential for sustaining this growth trajectory.
In conclusion, Brazil’s economy demonstrated significant growth of 3.4 percent in 2024, driven by substantial household expenditure and industry performance, despite challenges faced in the agricultural sector. The government’s focus for 2025 is on sustaining this momentum while addressing inflationary pressures on food prices. Optimistic forecasts for future growth highlight a recovery path that hinges on effective policy implementation and economic diversification.
Original Source: english.news.cn
