Brazil’s economy grew by 3.4% in 2024, the largest growth since 2021. This marks four consecutive years of economic expansion, supported by robust performance in services and industry despite a decline in agriculture. A historic low unemployment rate of 6.6% and increased household spending contributed to the growth, with GDP per capita rising to BRL 55,247.45.
In 2024, Brazil’s economy experienced a notable growth of 3.4%, marking the most significant expansion since 2021. This data, released by the Brazilian Institute of Geography and Statistics (IBGE), reflects the fourth consecutive year of economic growth. The country’s gross domestic product (GDP) reached BRL 11.7 trillion (approximately USD 2 trillion). In comparison, Brazil’s GDP growth figures for the previous years were 3.2% in 2023, 3% in 2022, and 4.8% in 2021, when the economy rebounded from a 3.3% contraction in 2020 due to the COVID-19 pandemic.
The sectors contributing to this growth in 2024 included services and industry, which saw increases of 3.7% and 3.3%, respectively, compared to 2023. Conversely, the agricultural sector faced a downturn, declining by 3.2%. Within industry, construction was particularly robust, achieving a growth rate of 4.3%. The decline in agriculture stemmed from adverse climatic conditions affecting critical crops, notably soybeans and corn, which decreased by 4.6% and 12.5%, respectively.
When analyzing GDP from a consumption perspective, household spending emerged as a key driver, increasing by 4.8%. Rebeca Palis, IBGE’s national accounts coordinator, noted that improvements in income availability significantly impacted household consumption, supported by government income transfer programs, improvements in the job market, and lower average interest rates compared to 2023.
By the end of 2024, Brazil’s unemployment rate fell to a historic low of 6.6%. Furthermore, GDP per capita rose to BRL 55,247.45 (USD 9,600.40), reflecting a 3% increase from the previous year, after accounting for inflation.
In summary, Brazil’s economy demonstrated strong growth in 2024, driven by advancements in the services and industrial sectors while facing challenges in agriculture. With significant progress in household consumption and low unemployment levels, the country’s economic outlook remains favorable. Continuing positive trends in GDP and increased per capita income further highlight the resilience and recovery of Brazil’s economy.
Original Source: anba.com.br
