The Brazilian economy grew by 0.2% in Q4 2024, a decline from the previous 0.7% with expectations at 0.5%. Growth in industrial output was driven largely by construction, while services saw only modest growth. Fixed investment and government spending mitigated the impact of falling household consumption. Net trade contributed positively, with exports increasing and imports slightly decreasing.
In the final quarter of 2024, the Brazilian economy experienced a growth of 0.2% quarter-on-quarter. This figure represents a decline from the previously revised 0.7% growth observed in the third quarter and fell short of market expectations that anticipated a growth rate of 0.5%.
Industrial output witnessed a modest increase of 0.3%, propelled by substantial gains in construction, at 2.5%, manufacturing at 0.8%, and mining at 0.7%. Meanwhile, the services sector saw a slight increase of 0.1%, where transportation and storage contributed 0.4%, alongside trade with a contribution of 0.3%.
On the demand side, the growth of fixed investment at 0.4% and government expenditure at 0.6% partially compensated for a marked decrease in household consumption, which declined by 1.0%. Positive contributions to GDP also stemmed from net trade, with exports growing by 1.3% while imports saw a slight decline of 0.1%.
Brazil’s economic growth in the fourth quarter of 2024 was modest, falling below expectations and showcasing a slowdown compared to previous quarters. Positive developments in industrial output and net trade were overshadowed by a significant decline in household consumption. The data highlights the challenges facing the Brazilian economy as it navigates low growth and varied sectoral performance.
Original Source: www.tradingview.com
