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The GDP per capita in Brazil rose by 3% in 2024, reaching R$55,247.45, the highest value recorded in its historical series by the IBGE.
Per capita GDP depends on the total output of goods and services in a country divided by the population size. Rebeca Palis from IBGE noted that the rate of change in GDP and per capita GDP has converged due to a slower population growth.
“The population is increasing at a slower rate. When per capita GDP is factored in, population growth and the growth of the two indicators become more aligned,” he clarifies.
The Minister of Planning and Budget, Simone Tebet, expressed satisfaction with the outcome on the social media platform X, stating that Brazil is exceeding growth projections and is actively working to combat inflation in order to lower food prices.
Silvia Matos, the coordinator of the Macro Bulletin at IBRE/FGV, suggests that GDP growth is tainted by inflation, which erodes people’s purchasing power.
Market concerns arise from GDP growth surpassing expectations and potentially being ‘unsustainable’.
Brazil’s GDP in 2024 grew by 3.4%, exceeding market predictions and continuing the trend of economic growth seen over the past four years.
Experts caution that the current growth, fueled by high consumption and expansive fiscal policies, may not be sustainable and raises worries about inflation and the future health of the Brazilian economy.
Rubens Cittadin, an analyst at Manchester Investimentos, highlights that although the GDP has performed well, the growth does not signify a genuine rise in productivity. Instead, it primarily stems from increased public spending, raising concerns about the sustainability of this growth.
The 3.4% GDP growth is significant, driven not by improved efficiency or productivity but by increased public spending, leading to inflation.
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