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Brazil achieved growth rates higher than those of the United States and equaled China. The performance is impressive, with emphasis on the expansion of investments and the strengthening of household consumption. According to the government, 2024 should end with growth above 3,3%,
O Brazil's Gross Domestic Product (GDP) presented, according to the government, a good performance in the third quarter of 2024, registering a growth of 0,9% compared to the previous quarter.
The result, announced by the Ministry of Finance and the Brazilian Institute of Geography and Statistics (IBGE), placed Brazil ahead of the United States, which grew 0,7%, and on the same level as China, which also registered 0,9%.
According to the Brazilian government, in official statement that can be read by clicking here, the progress is a reflection of a set of factors, such as the heating up of the job market, the increase in investments and the good performance of strategic sectors, such as civil construction and the provision of services.
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Brazil's performance was one of the best among the G20 countries, surpassed only by India (1,1%), Indonesia (1,0%) and Turkey (1,0%).
Quarterly data shows solid progress
According to the Secretariat of Economic Policy (SPE), the 0,9% GDP growth in the third quarter was slightly above market projections, which expected 0,8%.
The Ministry of Finance highlighted that Gross Fixed Capital Formation, which measures investments in capital goods and infrastructure, registered a significant increase of 10,8% in the period, consolidating the sector as one of the main responsible for economic expansion.
Civil construction, for example, continued to show solid growth, driven by private investment and increased production of construction materials.
The manufacturing industry also recorded positive results, contributing to the improvement of the country's economic performance.
Household consumption keeps the economy buoyant
Another strong point of the quarter was the growth in household consumption, which advanced 1,5% compared to the previous quarter.
This result reflects the increase in real wages and the greater availability of credit for individuals.
According to SPE, the resilient labor market was essential to sustain household purchasing power, ensuring that consumption continued to be one of the main drivers of the economy.
Furthermore, the services sector, which accounts for a significant portion of GDP, recorded growth of 0,9%, close to the performance of the previous quarter.
Trade and other service activities were highlights, driven by a favorable economic environment and increased domestic demand.
International comparison puts Brazil in the spotlight
On the international scene, Brazil's performance in the third quarter of 2024 attracted attention.
With growth of 0,9%, the country was ahead of advanced economies such as the United States (0,7%) and Japan (0,6%).
Brazil also matched China's performance, consolidating itself as one of the highlights among the world's largest economies.
According to the Brazilian government, growth above the G20 average reinforces the resilience of the national economy even in a context of global slowdown and high interest rates.
According to SPE, public policies adopted in recent years have contributed to creating an environment favorable to growth, especially for investments in strategic sectors.
GDP projections for 2024 and 2025
The expectation for GDP in 2024 is also optimistic. The Ministry of Finance revised its growth projection upwards, which should exceed 3,3% until the end of the year.
This number is higher than expected at the beginning of 2024, highlighting the strength of the economic recovery.
For 2025, the forecast is for a slight slowdown, with growth focused on less cyclical sectors, such as agriculture and mineral extraction production.
According to the government, these segments must play an important role in mitigating the impacts of the global scenario, marked by high interest rates and economic slowdown in several countries.
Detailed sector analysis
Agriculture: The agricultural sector, despite its relevance to the Brazilian economy, recorded a decline of 0,9% in the third quarter, an improvement from the 1,3% drop in the second quarter.
This slowdown was less impactful due to the reduction in the weight of soybean and corn crops during the period.
Industry: The industry showed growth of 0,6%, driven by the construction and manufacturing industries.
However, extractive production declined, contributing to a slowdown compared to the previous quarter.
Services: The services sector maintained its growth rate, with an increase of 0,9%, reflecting the expansion in activities such as commerce, transport and various services.
The sector's good performance reflects the increase in domestic consumption and the improvement in the job market.
Foreign trade
On the external side, Brazilian exports declined 0,6% in the third quarter, after a growth of 1,5% in the previous period.
The drop reflects lower demand for agricultural and industrial products, as well as services.
On the other hand, imports grew 1,0%, slowing from the 7,3% increase recorded in the second quarter.
This movement is explained by the increase in purchases of capital goods and industrialized products.
For some experts, the results of the third quarter of 2024 show that the Brazilian economy is in a moment of robust expansion, even in the face of internal and external challenges.
The growth of 0,9% in the period, higher than the United States and tied with China, reinforces Brazil's leading role in the global economic scenario.
With positive prospects for 2024 and 2025, the country seeks to consolidate its growth with a focus on investments, innovation and strengthening domestic consumption.
The question now is: will Brazil be able to maintain this pace and surpass major economies again in the coming years?
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