MercoPress. South Atlantic News Agency

Brazil’s industry posts 3.1% output increase in 2024

The annual increase was achieved despite three straight months of decline, IBGE's report showed

According to a report released by Brazil's Institute of Geography and Statistics (IBGE) this week, South America's largest country's industrial production closed out 2024 with a 3.1% from 2023's figures. These results, driven by rising employment and income, were the third-highest annually in the last 15 years.

The annual increase was achieved despite three straight months of decline. In December, production was down 0.3%, after having fallen in both October (0.2%) and November (0.7%). December's results were 1.6% higher than in the same period in 2023.

The new figures mean that the domestic industry is 1.3% above the pre-pandemic level of February 2020, but 15.6% below May 2011's all-time high. The current level of production is similar to that of December 2009.

The 3.1% surge of 2024 surpasses 2023’s by 0.1%. In the last 15 years, it was second only to 2010, which saw a 10.2% rise, and 2021, when it expanded by 3.9%, after the pandemic's blow. In 2020, a 4.5% drop was recorded, while in 2009 Brazilian industry faced a 7.1% drop amid a global economic crisis. Unlike in 2010 and 2021, growth in 2024 did not benefit from a downward scenario.

IBGE Survey Manager André Macedo pointed out that the expansion of the industry in 2024 was quite widespread, with positive figures in the four major economic categories—capital goods, intermediate goods, durable goods, and general goods—and in 20 of the 25 industrial branches surveyed.

“In general, the growth of the industrial sector in 2024 can be understood through a number of factors—such as the greater number of people joining the job market, the fall in the unemployment rate, the increase in the wage bill, and the increase in household consumption, benefiting from tax stimuli, higher incomes, and the evolution in the granting of credit,” he stated.

(Source: Agencia Brasil)