Monthly report from Fundação Getúlio Vargas reported that the decrease in margin is a reflection of the poor performance of agriculture and stagnation in industry and services; on the other hand, when compared to the same month of the previous year, growth was 5.4%, the highest recorded in 2024
The GDP Monitor released this Monday (16) revealed that the of Brazil recorded a drop of 0.5% in October compared to the previous month, September. However, when compared to the same month of the previous year, there was a significant growth of 5.4%. The accumulated rate in the last 12 months until October was 3.4%. Juliana Trece, coordinator of the GDP Monitor, pointed out that the observed decrease is attributed to the unsatisfactory performance of agriculture, in addition to stagnation in the industrial and services sectors. Despite this contraction in October, the Brazilian economy still shows signs of growth.
“It is worth remembering that last year the economy was strongly influenced by the performance of agriculture, especially in the first half of the year. This context helps to explain these dichotomous results compared to the most recent period and compared to 2023. In any case, despite the fall in October, the economy continues to show signs of growth. This retraction is insufficient to generate concern about economic activity and it is necessary to publish the next results to analyze whether this drop is a one-off or whether it actually indicates an economic slowdown”, commented Juliana.
In the quarter ending in October 2024, household consumption increased by 6.0%, while Gross Fixed Capital Formation (GFCF) also had a positive performance in the same period, with growth of 10.7%, especially driven by investments in machines and equipment. From another perspective, exports of goods and services rose 0.8%, while imports had a significant increase of 19.4%.
“The import trend remains strongly positive and widespread. Despite this, it is worth highlighting that the import of consumer goods and services reduced their contributions in the last quarter”, explained the Fundação Getúlio Vargas. In financial terms, Brazilian GDP reached R$9.689 trillion in the year to October, in current values. Reflecting this, it was an investment rate of 17.7%.
*Report produced with the help of AI
Posted by Victor Oliveira
