The growth of the services sector (0.9%), industry (0.6%), and agriculture (0.9%) were positive aspects highlighted by business entities in the country in light of the announcement of growth of Gross Domestic Product (GDP), at 0.9% in the quarter, as measured today (3) by the Brazilian Institute of Geography and Statistics (IBGE).
The industry federations of São Paulo (Fiesp) and Rio de Janeiro (Firjan), as well as the National Federation of Banks (Febraban), released press releases in which they cite growth as relevant, highlighting the various sectors of the economy in growth – domestic demand, labor market dynamism and credit growth.
“Another important factor that contributed to the last quarterly GDP was investments, which showed recovery throughout the year. As a result, the investment/GDP ratio also continues to rise”, highlighted, in a note, Isaac Sidney, the president of Febraban.
Firjan cited the fourth consecutive increase in investment (+2.1%), which brings the rate to 17.6% of GDP. “However, the federation points out that this rate remains below the 21% observed between 2010 and 2013, as well as the average for emerging countries, of 32%, revealing that Brazil still needs to sustain this level of growth for a long period until it reaches the level recorded in 2013”, warns the Rio de Janeiro entity.
Despite highlighting the positive situation, Fiesp points out that the current scenario points to a slowdown in the growth rate of the Brazilian economy in 2025. “The greater tightening of financial conditions added to the lower fiscal impulse ahead and the more challenging external scenario tends to limit the pace of expansion of activity, especially in the most cyclical sectors”.
Febraban is in line with the others when it comes to the future. For the bank federation, it is necessary to start looking at 2025 more carefully. “Domestic private demand has grown at a very intense pace, with an accumulated increase of around 5.5% in the year. As a result, we have seen an increase in inflationary pressures (with critical numbers in some wholesale segments, especially in the food sector)”.
And he concludes that: “In addition, the country needs to continue to aim for a credible and consistent plan to contain public spending. And we need to create the conditions so that the Central Bank does not need, for an indefinite period of time, to increase interest rates to an even higher level, which could inhibit this process of economic growth and resumption of investments”.
