Brazil’s Gross Domestic Product (GDP) grew by 0.8% in the first quarter of 2024, marking a positive start to the year with an economy that accumulated R$ 2.7 trillion during this period. This growth is attributed to significant contributions from the services sector, which saw a 1.4% increase, and the agriculture sector, which surged by 11.3%. Notably, household consumption rose by 1.5%, indicating a strong internal demand, and investment recovery also played a crucial role, with a 4.1% increase compared to the last quarter of 2023. Despite the robust growth in these sectors, the industry experienced a marginal decline of 0.1%. The investment rate in the country was reported at 16.9% of GDP, which is lower than the 17.1% recorded in the same period of the previous year. Furthermore, the savings rate decreased to 16.2%, down from 17.5%. These figures reflect a slight cooling in the economic momentum when it comes to investment and savings. Compared to the first quarter of 2023, Brazil’s economy grew by 2.5%, which is consistent across multiple reports. The services sector’s growth was particularly strong, with notable performances in commerce, information and communication, and professional services. The agricultural sector’s impressive growth is highlighted as a standout success, contributing significantly to the overall positive GDP figures. The Brazilian government and financial institutions are cautiously optimistic, recognizing the need for structural reforms and a conducive investment environment to sustain long-term economic growth. Inflation, exchange rate volatility, and global economic conditions remain areas of focus as Brazil navigates its economic trajectory in 2024.
Key points
- Brazil’s GDP grew by 0.
- The services sector and agriculture were the main drivers of growth, while the industry sector saw a slight decline.
- Investment and savings rates have seen a slight decrease compared to the same period last year.
8% in Q1 2024, reaching R$ 2.
7 trillion.
Contradictions👾While most sources report an increase in agriculture, one source notes a decline in the sector compared to the previous year.
