Brazil ended 2024 with its 13th straight quarter of economic growth, driven by strong performances in services and industry. In the fourth quarter, GDP showed steady expansion, highlighting the resilience of key sectors despite challenges in agriculture.
What Fueled the Growth in Q4 2024?
In the fourth quarter, the services sector continued to dominate, contributing with over 70 percent of Brazilโs GDP. Industry also played a significant role, with manufacturing and construction seeing steady improvements.
However, agriculture faced ongoing struggles due to weather-related challenges.
Jobs and Income Keep Driving the Economy
Strong job creation and improved household incomes have been essential in maintaining growth.
According to the Brazilian Institute of Geography and Statistics (IBGE), unemployment reached historic lows of just 6.2%, while government income transfer programs provided a safety net for low-income families.
A taxa de desemprego no Brasil baixou para 6,2%, a menor jรก registrada desde o inรญcio do levantamento do IBGE, em 2012. pic.twitter.com/qyFG8rATl1
โ Band Jornalismo (@BandJornalismo) November 29, 2024
Challenges Ahead
While the overall growth is a positive sign, challenges remain:
- Inflation: Although controlled, inflation remains above target, impacting purchasing power.
- High Interest Rates: The Central Bank raised rates to 10.75 percent in September 2024. The effects of this move are expected to be felt in early 2025, potentially slowing growth.
- Agricultural Decline: Persistent setbacks in agriculture highlight the need for investments in climate resilience and innovation.
O agronegรณcio hoje produz menos arroz e feijรฃo per capita do que hรก 4 dรฉcadas. O que leva ao constante risco de escassez e alta dos preรงos da principal dupla do Pรช-efe brasileiro.
Escrevi um artigo sobre isso, link ๐๐ผ pic.twitter.com/q2GHwzOejA
โ Gabriel Colombo (@colombogabrielm) May 8, 2024
A Look at the Future
Brazil’s economy is expected to stay strong. The government might raise its 2024 growth projection from the current 3.3 percent estimate. Focus on infrastructure, technology, and sustainable projects should keep the momentum going.
The government recently froze 860 million US dollars in spending to meet budget goals. This move shows how serious they are about balancing growth while keeping finances in check.
Heading into 2025, the challenge will be to manage inflation and invest in areas that keep the economy moving forward. Right now, the economy remains a positive sign for businesses and families across the country.
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