Brazil’s economy grew 3.4% in 2024 due to strong household spending. The industrial and services sectors also contributed positively, despite a decline in agriculture. Government projections indicate continued growth for 2025.

In 2024, Brazil’s economy experienced a growth of 3.4 percent compared to the previous year, primarily fueled by robust household spending, as reported by the Brazilian Institute of Geography and Statistics (IBGE). Household expenditures increased by 4.8 percent year-on-year, significantly supporting the country’s Gross Domestic Product (GDP).

The IBGE report further highlights contributions from the industrial and services sectors, which rose by 3.3 percent and 3.7 percent respectively. However, the agricultural sector faced challenges, contracting by 3.2 percent due to inadequate harvests. Additionally, exports increased by 2.9 percent, while imports surged 14.7 percent, largely attributed to heightened demand for chemicals, machinery, and motor vehicles.

Brazil’s President, Luiz Inacio Lula da Silva, expressed optimism regarding the economic growth, designating 2025 as “the year of the harvest.” He noted, “A growing GDP means more jobs and more money in the hands of Brazilians.” In tandem, Minister of Planning and Budget Simone Tebet pointed out that the GDP per capita rose to 55,247.45 reais (approximately 9,558.4 U.S. dollars), representing a 3.0 percent growth, while underscoring the importance of addressing inflation to reduce food prices.

Looking forward, financial markets anticipate Brazil’s GDP growth to reach 2.01 percent in 2025, with the government projecting a target of 2.3 percent. Overall, while household and industrial activities have driven growth, concerns remain in agriculture and inflation that require ongoing attention.

In summary, Brazil’s economy demonstrated considerable growth in 2024, with a positive performance driven predominantly by household spending alongside gains in the industry and services sectors. Nonetheless, challenges in agriculture and inflation persist, emphasizing the necessity for strategic actions in these areas. Government projections suggest a continued growth trajectory for 2025, albeit at a slightly moderated rate.

Original Source: english.news.cn

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