Rio de Janeiro – The Brazilian economy grew by 3.4% in 2024, the largest expansion since 2021. The result of gross domestic product was released on Friday morning (7) by statistics agency IBGE.
The result represents the fourth consecutive year of growth. According to the IBGE, Brazil’s GDP reached BRL 11.7 trillion [USD 2 trillion]. In 2023, GDP growth was 3.2%, in 2022 it was 3%, and in 2021 it was 4.8%. In 2021, the comparison base was weak, as the economy shrank by 3.3% in 2020, at the start of the COVID-19 pandemic.
Last year, the services and industrial sectors drove GDP growth, with increases of 3.7% and 3.3%, respectively, compared to 2023. On the other hand, agriculture experienced a decline of 3.2%.
Within industry, construction stood out with a 4.3% increase. The decline in agriculture was driven by various climatic factors that impacted several important crops in Brazil, particularly soybeans (-4.6%) and corn (-12.5%).
Production and consumption
GDP can be calculated either from the production or consumption perspective. In terms of consumption, the highlight was household spending, which grew by 4.8%. According to Rebeca Palis, IBGE’s national accounts coordinator, the explanation lies in the availability of income for the population. “For household consumption, we had a positive combination of factors, such as government income transfer programs, the continued improvement of the job market, and interest rates that were, on average, lower than in 2023,” she analyzes.
Brazil ended 2024 with an unemployment rate of 6.6%, the lowest ever recorded in the country’s history. The GDP per capita, which represents the GDP divided by the number of inhabitants, reached BRL 55,247.45 (USD 9,600.40). There was a 3% increase in GDP per capita in 2024 compared to 2023, adjusted for inflation.
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Translated by Guilherme Miranda
