São Paulo – Brazil’s gross domestic product (GDP) posted a 2.9% growth in 2023 from 2022, statistics agency IBGE showed on Friday (1). The three sectors of the economy posted a year-on-year growth, of 15.1% in agriculture, 1.6% in industry, and 2.4% in services. Growth in the fourth quarter, though, stagnated compared to the third quarter and came in at 2.1% on an annual basis.
According to IBGE data, the GDP expansion in agriculture was boosted by output gains, particularly in soybean at 27.1%, and maize at 19%, both record highs. The industrial sector was led by extractive segments like mining and oil which grew at 8.7%. Als services segments were up, particularly financial activities, insurance and related services. (Pictured, soybean harvest.)
IBGE National Accounts coordinator said that the performance of agriculture and the extractive industry were determinant for the 2023 results. “The growth was driven by two economic activities that saw a very significant growth this year, some of them even registered record highs. They were agriculture – which grew at 15.1% last year, mainly driven by soybean and maize output, two of the most important crops in Brazil – and extractive industries like oil and mining which grew significantly, too, and the two of them are responsible for approximately half of last year’s GDP growth,” she said.
According to IBGE data, the GDP per capita in 2023 rose 2.2% from 2022 to BRL 50,193.72 (USD 10,091.80). Gross fixed-capital formation plunged by 3% from 2022. Household consumption grew 3.1%, driven by wages, slowing inflation, and welfare programs, while government spending were up 1.7%. Exports rose by 9.1% in 2023 from 2022, and imports declined 1.2%.
Translation by Guilherme Miranda
