Brazil’s Gross Domestic Product (GDP) is expected to rise from 2.4% to 3.4% in 2024, projects the 3rd Quarter Situational Report, released by the National Confederation of Industry (CNI) this Thursday (10).
CNI’s Economics superintendent, Mário Sérgio Telles explains what led the entity to significantly review this year’s GDP growth: “CNI increased the 2024 GDP forecast, mainly due to the economy’s performance in the first half of the year. , which was very positive, above our expectations.”
Furthermore, according to Telles, “the factors that have contributed to growth should not disappear until the end of the year and the second half of the year will be based on comparison with the weakest period of activity in 2023”.
Among the reasons for the economy’s performance, especially to sustain demand and investment, are the increase in family consumption, a consequence of a heated job market; the increase in the wage bill and the greater supply of credit; in addition to government spending.
Despite predicting lower intensity, the confederation believes that these factors will continue to boost activity in the second half of 2024.
Growth
The new edition of the Labor Market Bulletin from the Institute of Applied Economic Research (Ipea), released this Wednesday (9), confirms the positive picture regarding the labor market highlighted by the CNI. Based on data from the Brazilian Institute of Geography and Statistics (IBGE), Ipea highlights that the workforce and employed population are at the highest levels recorded since the beginning of the Continuous PNAD historical series in 2012.
In 2024, Brazil recorded a 1.7% increase in the workforce, reaching more than 109 million workers. The number of employed citizens grew by 3%, totaling 101.8 million people. The unemployment rate fell 6.9%, this is the lowest number since 2014.
Formal employment also showed growth, with an increase of 4% compared to the second quarter of 2023, according to data from PNAD Contínua. Furthermore, Novo Caged recorded the creation of 1.7 million new jobs with a formal contract.
