Brazil’s economy grew by 0.2% in Q4 2024, below the expected 0.5%. Industrial output increased by 0.3%, spurred by construction, manufacturing, and mining. Fixed investment and government spending rose, but household consumption fell by 1.0%. Exports increased by 1.3% while imports decreased by 0.1%, aiding net trade’s contribution to GDP.
In the fourth quarter of 2024, Brazil’s economy registered a modest growth of 0.2% on a quarterly basis, which is below market forecasts of 0.5%. This growth follows a downwardly adjusted figure of 0.7% from the previous quarter. The weaker performance indicates a continuing slowdown in the country’s economic momentum.
Industrial production saw a slight uptick of 0.3%, primarily due to notable gains in construction (2.5%), manufacturing (0.8%), and mining (0.7%). Meanwhile, the services sector experienced a minor increase of 0.1%, boosted largely by contributions from transportation and storage (0.4%) and trade (0.3%).
On the demand side, fixed investment rose by 0.4%, alongside government spending which increased by 0.6%. However, this was counterbalanced by a significant drop in household consumption, which fell by 1.0%.
Additionally, net trade positively impacted GDP; exports climbed by 1.3% while imports dipped slightly by 0.1%. This indicates a potentially favorable trade balance contributing an uplift to economic conditions.
In summary, Brazil’s Q4 economic growth fell short of expectations due to a combination of declining household consumption and modest gains in industrial output. While fixed investments and government spending provided support, the overall economic performance highlights the ongoing challenges in the Brazilian economy amid changing consumer behavior and external trade dynamics.
Original Source: www.tradingview.com
