GDP
GDP closes 2024 at 3.4% and records highest rate since 2021
March 07, 2025 09h00 AM | Last Updated: March 09, 2025 01h33 AM
Gross Domestic Product (GDP) in Brazil registered a positive change of 0.2% in Q4 2024 from Q3 and closed the year with an increase of 3.4%, having reached R$ 11.7 trillion. That was the highest annual GDP rate since 2021.
Positive changes of GDP came from Services and Industry which, against 2023, increased by 3.7% and 3.3% respectively. In the same comparison, Agriculture dropped by 3.2%. Per capita GDP hit R$ 55,247.45, an increase of 3.0% in real terms, against the previous year. Data come from the System of Quarterly National Accounts, released today (7), by the IBGE.
Rebeca Palis, coordinator of National Accounts at the IBGE, explains that the main highlights of GDP from the perspective of production (of economic activities) were Other service activities (5.3%), manufacturing industry (3.8%) and Trade (3.8%), which, together, accounted for about half of the GDP growth in 2024.
In Industry, Construction stood out with a positive result of 4.3% in 2024, as a result of the increase of employment in the activity, production of typical inputs and expansion of credit. Other positive contributions, besides Manufacturing industry, came from Electricity and gas, water, sewage, residue management activities (3.6%).
The drop in Agriculture (-3.2%) reflects the performance of Agriculture. Harsh climate effects afected many important crops that registered a decrease in the annual output estimate and loss of productivity, having soybeans as a highlight (-4.6%) and corn (-12.5%).
Household consumption is the main contributor to GDP from the perspective of demand
From the perspective of demand, a highlight is Household Consumption Expenditure, which advanced 4.8% from 2023. “As for household expenditure there was a group of positive factors, such as income transfer programs created by the government and the interests, which were, on average, lower than in 2023,” says the researcher. A highlight was investment (GFCF) (7.3%), which, in spite of its increase is less representative than household consumption.
Government consumption expenditure increased by 1.9% in the year. Imports of goods and Services recorded an increase of 14.7% in 2024 and Exports increased by 2.9%. The investment rate in 2024 reached 17.0% of GDP, more than in 2023, when it reached 16.4%. The savings rate, in turn, stood at 14.5% in 2024 (versus 15.0% in the previous year).
Of the total current GDP figure, R$ 11.7 trillion, R$ 10.1 trillion referred to Value Added at basic prices, whereas R$ 1.6 billion referred to Product taxes net of subsidies.
GDP of Q4 2024 presents stability against Q3
GDP recorded a positive change (0.2%) against Q4 versus Q3 2024. Among the sectors, Industry changed 0.3%, whereas Services changed by 0.1%. Agriculture dropped 2.3%.
“In Q4 2024, what calls attention is that GDP was almost stable, with the increase in investments, but a drop in household consumption. In Q4, inflation accelerated, mainly in the case of food products. We kept the improvement in labor market, but with a rate that is not so high. And interest started to increase last September, with impacts on Q4 already,” says Rebeca.
In industrial activities, where Construction (2.5%) stands out, in Manufacturing Industry (0.8%) and Mining and Quarrying industry (0.7%). The activity of Eletricity and gas, water, sewage and residue management dropped by -1.2%.
In Services, the activities of Transportation, storage and mailing (0.4%) and Trade (0.3%) recorded a positive change. Real estate activities (0.1%), Administration, defense, public health and education and social security (0.0%) and Other service activities (-0.1%) were stable. Financial, insurance and related services (-0.3%) and Information and communication (-0.4%) recorded negative results.
From the perspective of demand, there was a drop in Household Consumption Expenditure (-1.0%) , increase of Government Consumption Expenditure (0.6%) and Gross Fixed Capital Formation (0.4%).
With reference to the foreign sector, Exports of Goods and Services decreased by -1.3%, whereas Imports of Goods and Services were stable (-0.1%) in this comparison.
More about the survey
The System of National Accounts shows, on a quarterly basis, the current values and the volume indexes for the PGross Domestic P roduct (GDP) at market prices, taxes on products, value added at basic prices, personal consumption, government consumption, gross fixed capital formation, stock changes, and exports and imports of goods and services. The survey began in 1988 at the IBGE and it was redesigned in 1998, when its results were integrated to the System of National Accounts, which has an annual periodicity. Please check the GDP data on Sidra. The next release, relative to Q1 2025, will be on May 30.
