Brazil’s economy grew by 3.4% in 2024, achieving the largest expansion since 2021. The GDP reached BRL 11.7 trillion (USD 2 trillion), with notable growth in the services and industrial sectors. Household spending rose by 4.8%, reflecting improved income conditions for the populace, while agriculture experienced a decline. Brazil’s unemployment rate hit a record low of 6.6%.
In 2024, Brazil’s economy exhibited a notable growth of 3.4%, marking its highest expansion since 2021, as reported by the Brazilian Institute of Geography and Statistics (IBGE). This development indicates the fourth consecutive year of economic growth, with Brazil’s gross domestic product reaching BRL 11.7 trillion (approximately USD 2 trillion). The prior years saw GDP growth of 3.2% in 2023, 3% in 2022, and 4.8% in 2021, when recovery followed a 3.3% contraction in 2020 due to the COVID-19 pandemic.
The growth in 2024 was primarily driven by the services and industrial sectors, which increased by 3.7% and 3.3%, respectively, compared to the previous year. Notably, the construction sub-sector experienced significant growth of 4.3%. Conversely, agriculture faced a downturn, declining by 3.2%, largely due to adverse climatic conditions impacting key crops like soybeans and corn.
Analyzing GDP from the consumption perspective, household spending rose significantly by 4.8%, attributed to favorable factors such as government income transfer programs, an improving job market, and relatively lower interest rates compared to 2023. Rebeca Palis, the national accounts coordinator at IBGE, emphasized, “For household consumption, we had a positive combination of factors.”
As of the end of 2024, Brazil recorded its lowest unemployment rate in history at 6.6%. The GDP per capita also saw an increase, reaching BRL 55,247.45 (approximately USD 9,600.40), which is a 3% rise adjusted for inflation compared to 2023.
Brazil’s economy demonstrated a robust recovery in 2024, achieving a significant growth rate of 3.4% driven by the services and industrial sectors. Despite challenges in agriculture, positive consumption trends contributed to this economic expansion, culminating in historical low unemployment rates and increased GDP per capita. The favorable conditions underscore the resilience of Brazil’s economy during the post-pandemic recovery.
Original Source: anba.com.br
