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The agribusiness GDP experienced a 3.2% decrease compared to 2023, marking the most significant decline since 2016 when there was a 5.2% drop, according to data from IBGE.
The retreat took place following a peak of 16.3% in 2023. Adverse weather conditions have affected several crucial crops, leading to disruptions in national production and influencing the index, as stated by IBGE.
GDP decreased by 2.3% in the fourth quarter compared to the previous quarter and declined by 1.5% in the fourth quarter of 2023.
In 2024, agriculture was the only subsector of the Brazilian economy that experienced a decline, with notable decreases in orange (-21.1%), corn (-12.5%), and soy (-4.6%).
Agroindustry shows a 2% growth in 2024, but experiences a decline in December.
Last year marked a successful period for the agricultural industry, concluding with a 2% increase from the previous year, as reported by FGVAgro research. This growth represents the most significant progress in a year since 2010, when production soared by 6%.
The Food and Beverage Products and Non-Food Products segments drove the growth of the Agroindustry during the period, expanding by 1.5% and 2.6% respectively.
The FGVAgro analysts pointed out that the strong demand in the local market, particularly in the first six months of 2024, for food and drinks, was one of the factors influencing the sectors’ performance.
There was a steady improvement primarily in Agricultural Intakes, Textile, and Forest Products sectors, with a positive impact on the Non-Food Products category, as reported by the “Money Times”.
Despite the positive outcome in 2024, Agroindustry experienced a 0.5% decline in December compared to December 2023, marking the second consecutive year-on-year decrease, raising concerns about Agroindustry’s performance this year.
FGVAgro cautioned that the Brazilian economy is showing signs of a slowdown because of the rising interest rates and inflation eroding the purchasing power of the domestic market.
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