In 2024, Brazil’s economy grew by 3.4%, the largest since 2021, driven by services and industry. Household spending increased significantly, contributing to low unemployment at 6.6%. GDP reached BRL 11.7 trillion, with per capita GDP rising to BRL 55,247.45, illustrating economic recovery and improvement in living standards.
In 2024, Brazil’s economy demonstrated significant growth, expanding by 3.4%, marking the largest increase since 2021. The Brazilian Institute of Geography and Statistics (IBGE) released this GDP figure, highlighting that Brazil’s GDP reached BRL 11.7 trillion (approximately USD 2 trillion). This constitutes the fourth consecutive year of economic growth, following increases of 3.2% in 2023, 3% in 2022, and 4.8% in 2021, where growth came off a low base due to a 3.3% contraction in 2020, during the COVID-19 pandemic.
The primary contributors to this GDP growth were the services and industrial sectors, which grew by 3.7% and 3.3%, respectively, compared to the previous year. Conversely, agriculture saw a downturn of 3.2%, primarily influenced by adverse climatic conditions affecting critical crops like soybeans and corn, with declines of 4.6% and 12.5% respectively. Notably, the construction sector within the industry showed a robust increase of 4.3%, reflecting promising developments in that area.
From a consumption standpoint, household spending was a standout component, increasing by 4.8%. Rebeca Palis, the national accounts coordinator at IBGE, noted that this growth was supported by various factors, including government income transfer programs, improvements in the labor market, and lower average interest rates compared to 2023. Furthermore, Brazil concluded 2024 with an unemployment rate of 6.6%, the lowest historical record.
The GDP per capita, which denotes economic output per person, reached BRL 55,247.45 (USD 9,600.40), showing a three percent increase when adjusted for inflation compared to the previous year. This growth highlights the economy’s recovery trajectory and the positive impact of various economic policies that have facilitated increased domestic consumption and employment.
Brazil’s economy rebounded strongly in 2024, growing by 3.4%, highlighted by substantial contributions from the services and industrial sectors. Although agriculture faced challenges, household spending and a historic low in unemployment showcased the economy’s resilience. With a GDP per capita increase indicating improved living standards, Brazil’s continued economic expansion reflects effective fiscal measures and a recovering job market.
Original Source: anba.com.br
