MercoPress. South Atlantic News Agency

Brazil: IBGE says growth in 3Q reached 0.9%

The IBGE also reported that the GDP growth for 2023, previously published as 2.9%, has been revised upward to 3.2%

Brazil's economy grew 0.9% in the third quarter of 2024, according to data released this week, Agencia Brazil reported Wednesday citing figures from Brazil's Institute of Geography and Statistics (IBGE), which represented a 4% yoy increase in the country's Gross Domestic Product (GDP)—the total of all goods and services produced nationwide.

In the four quarters to date, growth stood at 3.1%. By sector, services and industry grew by 0.9 and 0.6%, respectively, from the second to the third quarter. Agriculture was the only sector to decline, contracting by 0.9%. Between the first and second quarters of 2024 growth stood at 1.4%.

With these results, GDP and the services sector have returned to record levels. However, Brazil's industry remains 4.7% below its peak in 3Q of 2013.

“We continue to see several positive effects, such as a strong labor market. Inflation is above target, but not at extremely high levels, and the government is maintaining its income transfer policy,” IBGE National Accounts Coordinator Rebeca Palis explained. She also noted that unemployment has reached historical lows.

In her view, the slowdown is not yet the result of September's increase in the basic interest rate by the Monetary Policy Committee (Copom) in September, from 10.5 to 10.75%. “It takes a while to have a greater effect on economic activity. The third quarter doesn't have such an impact, even though interest rates are at a high level,” she argued.

From the beginning of the year to the third quarter of 2024, GDP grew by 3.3% compared to the same period in 2023, with agriculture declining by 3.5% but with industry and services expanding by 3.5% and 3.8% respectively.

The IBGE also reported that the GDP growth for 2023, previously published as 2.9%, has been revised upward to 3.2%.