The Brazilian economy grew by 3.4% in 2024, the largest increase since 2021, according to IBGE. This growth marks the fourth consecutive year of economic expansion, driven by the services and industrial sectors. The agriculture sector, however, witnessed a decline due to climatic issues. Household consumption rose significantly, correlating with favorable economic factors. Unemployment reached a historic low of 6.6%.
In 2024, the Brazilian economy experienced a noteworthy growth of 3.4%, marking its most significant expansion since 2021. This figure was announced by the Brazilian Institute of Geography and Statistics (IBGE) on Friday, indicating that the nation’s gross domestic product (GDP) reached BRL 11.7 trillion, or approximately USD 2 trillion. This expansion follows three consecutive years of positive growth, with rates of 3.2% in 2023, 3% in 2022, and 4.8% in 2021. It is important to highlight that 2021’s base was particularly low due to a 3.3% economic decline in 2020 as a result of the COVID-19 pandemic.
The growth of Brazil’s GDP in 2024 was driven mainly by the services and industrial sectors, which increased by 3.7% and 3.3%, respectively, compared to the previous year. However, the agriculture sector saw a downturn of 3.2%. Notably, the construction industry within the industrial sector excelled with a growth rate of 4.3%. The agricultural decline can be attributed to various climatic issues that adversely affected major crops, including a decrease of 4.6% in soybean production and 12.5% in corn production.
GDP can be assessed through either production or consumption metrics. Focusing on consumption, household spending proved to be a significant contributor, rising by 4.8%. Rebeca Palis, the national accounts coordinator at IBGE, attributed this positive trend to a favorable blend of factors, including government income transfer programs, continuous job market improvements, and relatively lower interest rates compared to 2023.
At the close of 2024, Brazil reported an unprecedented unemployment rate of 6.6%, marking the lowest figure in the nation’s history. Consequently, the GDP per capita, calculated by dividing the GDP by the population, reached BRL 55,247.45, or USD 9,600.40, reflecting a 3% inflation-adjusted increase from the previous year.
In summary, Brazil’s economy has shown robust growth of 3.4% in 2024, primarily propelled by the services and industrial sectors, while agriculture faced challenges. Enhanced household spending and favorable economic conditions contributed to this growth, alongside the record low unemployment rate. The increase in GDP per capita indicates improved living standards, reinforcing the positive trajectory of Brazil’s economic recovery post-pandemic.
Original Source: anba.com.br
