Brazil Annual GDP Growth Unexpectedly Slows

The Brazilian economy grew by 3.6% year-on-year in the fourth quarter of 2024, slowing from a 4.0% expansion in the previous quarter and falling slightly short of market expectations of 4.1%.

Output growth decelerated across both industry (2.5% vs.

3.6% in Q3) and services (3.4% vs.

4.1%), while agricultural activity contracted for the fourth consecutive quarter (-1.5% vs.

-0.8%).

On the demand side, household consumption eased to 3.7% (from 5.5%), government spending rose by 1.2% (down from 1.3%), and fixed investment slowed to 9.4% (from 10.8%).

Net trade also had a negative impact, with exports falling 0.7% and imports surging 16.0%.

For the full year of 2024, Brazil's economy grew by 3.4%, marking the strongest annual expansion since 2021.