Economic
Brazil's Economy Grows 3.4% in 2024 While Q4 Signals Cooling Trend
Brazil’s economy shows strong annual growth but exhibits signs of cooling in late 2024 amid high interest rates and fiscal pressures.
Brazil’s economy expanded by 3.4% in 2024, surpassing 2023’s 3.2% growth, but the fourth quarter recorded only 0.2% quarter‑on‑quarter growth, below market expectations of 0.5%. Year‑on‑year growth in Q4 reached 3.6%, also short of the anticipated 4.1% expansion. The service sector was the main driver with 3.7% year‑on‑year growth, followed by industry at 3.3%, while agriculture declined 3.2% due to climatic impacts on crops such as soybeans. The Central Bank has raised the Selic rate to 13.25% in January 2025, with an additional hike to 14.25% expected in March, in an effort to contain persistent inflation. Although unemployment reached a record low of 6.2% in 2024, fiscal concerns remain significant, with a primary budget deficit of 0.5% and a public‑debt‑to‑GDP ratio approaching 80%, raising risks for medium‑term growth and financial stability.
- Status
- active
- Location
- Brazil
- Date added
- 2026-03-25 21:21 UTC
- Last updated
- 2026-03-25 21:21 UTC
- Connected threats
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- Not Available