Finance expects a 2.2% increase in GDP in 2024 and confirms projection of a new slowdown in the economy

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GDP is the sum of all goods and services produced in the country. The indicator serves to measure the evolution of the economy. Brazilian economy advanced 2.9% in 2023, IBGE announced this Friday. Brazil’s GDP grows 2.9% in 2023, says IBGE The Economic Policy Secretariat (SPE) of the Ministry of Finance estimated this Friday (1st) that this year’s Gross Domestic Product (GDP) should register a growth of 2.9% two%. If confirmed, there will be a further slowdown in the pace of economic expansion. GDP is the sum of all goods and services produced in the country. The indicator serves to measure the evolution of the economy. In 2023, according to data released by the Brazilian Institute of Geography and Statistics (IBGE), Brazilian GDP increased by 2.9% compared to the previous year. The final result was very close to that of 2022, when Brazilian economic activity increased by 3%. For the financial market, according to a survey conducted by the Central Bank last week, the country’s pace of activity will grow less than estimated by the Ministry of Finance, with a 1.75% increase. According to the SPE, from the Ministry of Finance, the 2.2% growth projection for the economy this year is based on the following assumptions: lower contribution from the agricultural sector compared to 2023; recovery of activity in Industry – guided by the resumption of productive investments and continued expansion of mineral extractive production; stability in the pace of expansion of Services, with the lower contribution of tax benefits being offset by the advance of credit and the resilience of the job market. “The outlook is for more homogeneous growth across cyclical activities – driven by the less contractionary level of interest rates [juros menores do que em 2023] – and not cyclical”, added the Ministry of Finance. On the demand side, according to the Secretariat of Economic Policy, the perspective should be reflected in “an increase in the contribution of domestic absorption to growth, with emphasis on the resumption of investments” Míriam Leitão sees a favorable GDP result for 2023: ‘Good news and points of concern’

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