Brazil’s economy grew 3.4% in 2024, the highest since 2021, with GDP reaching BRL 11.7 trillion. Services and industry contributed to the growth, while agriculture faced setbacks. Notably, household spending rose significantly, and the unemployment rate fell to a historic low of 6.6%.
In 2024, Brazil’s economy experienced a growth of 3.4%, marking the largest expansion since 2021, as reported by the IBGE (Brazilian Institute of Geography and Statistics). This growth, contributing to a total GDP of BRL 11.7 trillion (approximately USD 2 trillion), signifies the fourth consecutive year of economic expansion.
Comparatively, GDP growth in previous years included 3.2% in 2023, 3% in 2022, and 4.8% in 2021, which had a weak base due to a 3.3% contraction in 2020 during the pandemic. Notably, the growth in 2024 was driven by the services and industrial sectors, which rose by 3.7% and 3.3%, respectively, although agriculture saw a decline of 3.2%.
Specifically, construction within the industrial sector exhibited strong performance, growing by 4.3%. The agricultural decline, particularly in crops such as soybeans (-4.6%) and corn (-12.5%), was attributed to adverse climatic conditions affecting production.
From a consumption perspective, household spending significantly contributed to GDP growth, increasing by 4.8%. Rebeca Palis, IBGE’s national accounts coordinator, noted that this was influenced by several positive factors, including government income transfers, job market improvements, and lower average interest rates compared to 2023.
By the end of 2024, Brazil recorded an unemployment rate of 6.6%, the lowest in its history. Additionally, GDP per capita rose by 3% in inflation-adjusted terms, totaling BRL 55,247.45 (USD 9,600.40).
The Brazilian economy’s growth of 3.4% in 2024 highlights its ongoing recovery and expansion, driven by key sectors like services and industry while dealing with challenges in agriculture. With significant boosts in household spending and a historic low unemployment rate, Brazil demonstrates resilience in the face of past economic challenges and is poised for further development.
Original Source: anba.com.br
