Brazilian economy grows 2.9% in 2023

Brazil’s gross domestic product (GDP) grew by 2.9 percent in 2023 to a total BRL 10.9 trillion. In 2022, the growth rate had stood at three percent. The data were released Friday (Mar. 1) by the statistics bureau IBGE.

The rise in the GDP for the year was driven by a record 15.1 percent expansion in the agricultural sector, the most significant leap since the beginning of the time series in 1995. Industry (1.6%) and services (2.4%) also saw an improvement.

“Agriculture grew by 15.1 percent last year, pushed by the growth in soybean and corn production—two of Brazil’s most important crops,” explained IBGE researcher Rebeca Palis. “The mineral extraction industry, with the extraction of oil and iron ore, also grew significantly.”

Agriculture and mining, Palis went on, accounted for half of the GDP’s growth. “Two other important activities in the economy are also worth mentioning: electricity—water, gas, and sewage—and financial intermediation.”

From a demand perspective, growth was driven by household consumption (3.1%), government consumption (1.7%), and exports (9.1%). The 1.2 percent drop in imports also contributed to the result. Gross fixed capital formation, i.e. investments, on the other hand, fell by three percent over the year.

From the third to the fourth quarter of the year, the GDP remained stable. Comparing the fourth quarter of 2023 with the same period last year, an increase was reported at 2.1 percent.