Brazilian economy grew 0.2% in the 4th quarter of 2024 compared to the 3rd; Agriculture should help this year
The Ministry of Finance’s SPE (Secretariat of Economic Policy) said on Friday (7.mar.2025) that the Brazilian economy should accelerate in the first quarter of 2025 compared to the 4th quarter of 2024. Here is the technical note (PDF – 1 MB).
According to the Government (PT), the best performance of agriculture in the 1st quarter of 2025 should enhance the economy at the beginning of the year. Subsequently, in the 2nd quarter, there will be a new deceleration.
“In the first trimester of 2025, the pace of growth is expected to climb the margin again, then slowing down. The expansion of agricultural activity should be in the 2 -digit house, mainly reverberating the record soybean harvest. The GDP of services should accelerate on the 1st quarter, reflecting the readjustment of the minimum wage and the highest pace of growth of agricultural activities, such as transport and commerce“, These.
SPE said the negative performance of agriculture in the 2nd quarter will cause pressures on Brazilian GDP. In the 2nd half of the year, the perspective is that “growth pace remains close to stability ”. The Ministry of Finance expects a 2.3% increase in the Brazilian economy in 2025.
The secretary also stated that Brazil occupied the 4th best position in the accumulated of 2024.
Ministry of Planning
The Ministry of Planning and Budget said in a technical note that the 2024 GDP outcome was positive and represents the 4th year of consecutive growth after the effects of Covid-19 pandemic. Here’s (PDF – 261 kb).
“The growth of industry and services were the highlight on the side of the offer. From the perspective of demand, all components recorded positive variation: families consumption accumulated up 4.8%; government consumption with an expansion of 1.9% and the investment maintaining positive rates in four quarters, for the second consecutive time“, These.
GDP DO BRASIL
Brazil’s GDP (Gross Domestic Product) 3.4% in 2024, accelerating from 2023 (3.2%).
Gross domestic product is the sum of everything the country has produced in a certain period. It is one of the most important indicators of the performance of an economy. If it grew up, the dynamic is heated.
The result came aligned with the projections of the financial agents. An increase near 3.5%was expected, according to projections collected by the Poder360.
Agriculture GDP fell 3.2% in 2024 with the smallest soybean and corn harvests. The industry was up 3.3%, pulled by the transformation industry and construction. The services sector advanced 3.7% in 2024 and accelerated the pace compared to 2023 (2.8%).
“In 2024, the highest pace of growth reflected positive impulses from the labor and credit market, as well as policies to encourage productive and sustainable development“, He said to Spe.
On the expense side, families consumption grew 4.8% over the previous year. Government consumption advanced 1.9%.
The federal government evaluates that there was advancement of income and credit concessions, which propelled GDP. FBCF (gross fixed capital formation) grew 7.3% last year, impacted by“Strong expansion in the production and import of machinery and equipment”.
4th quarter
Brazil’s GDP grew 0.2% in the 4th quarter compared to the 3rd quarter, in the season with seasonal adjustment. The expansion rate slowed down the 2nd quarter in a row. It was lower than that estimated by financial agents and SPE (0.4%).
Pib to happen
The per capita GDP of Brazil reached R $ 55,247.45 and grew 3.0% in 2024. It was the highest increase since 2021.
