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GDP grows 0.9% in the third quarter of 2024

December 03, 2024 09h00 AM | Last Updated: December 03, 2024 02h50 PM

In the third quarter of 2024, the GDP grew 0.9% compared to the second quarter of 2024, in the seasonally adjusted series. From the production approach, Services (0.9%) and Industry (0.6%) grew, while Agriculture (-0.9%) declined.

Period of Comparison  Indicators      
GDP AGR IND SERV GFCF HOUS CONS  GOV CONS
Quarter/previous quarter (seasonally-adjusted) 0.9% -0.9% 0.6% 0.9% 2.1% 1.5% 0.8%
Quarter/same quarter a year ago (not seasonally-adjusted) 4.0% -0.8% 3.6% 4.1% 10.8% 5.5% 1.3%
Cumulative in four quarters/ same period a year ago  (not seasonally-adjusted) 3.1% -2.9% 3.4% 3.4% 3.7% 4.5% 2.9%
Q3 current values (R$) 3,0 trilhão 162,9 bilhões 658,6 bilhões 1,8 trilhão 526,8 bilhões 1,9 trillion 535,1 billion
Investment rate (GFCF/GDP) in Q3 2024 = 17,6%       
Savings rate (SAV/GDP) in Q3 2024 = 14,9%       

The GDP totaled R$3.0 trillion in the third quarter of 2024, of which R$2.6 trillion referred to Value Added at basic prices and R$414.0 billion to Net Taxes on Products. In the same period, the investment rate was 17.6% of GDP, above the 16.4% recorded in the third quarter of 2023. The savings rate was 14.9%, below the 15.4% in the same quarter of 2023.

Compared to the third quarter of 2023, the GDP grew by 4.0%. Services (4.1%) and Industry (3.6%) grew in the period, while Agriculture (-0.8%) declined.

TABLE II.1 - Main GDP results at market prices from Q3 2023 to Q3 2024
Rates (%) 2023.III 2023.IV 2024.I 2024.II 2024.III
Cumulative rate over the year / same period of the previous year 3.5 3.2 2.6 3.0 3.3
Last four quarters / four preceding quarters 3.3 3.2 2.8 2.7 3.1
Quarter / same quarter of the previous year 2.4 2.4 2.6 3.3 4.0
Immediately preceding quarter/quarter (seasonally adjusted) 0.2 0.2 1.1 1.4 0.9
Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais   

GDP grows 0.9% compared to the previous quarter

In the third quarter of 2024, the GDP grew 0.9% compared to the second quarter of 2024, in the seasonally adjusted series. The best result was in the Services sector, which grew 0.9%, followed by Industry, growing 0.6%. Agriculture declined 0.9%.

In Services, there were expansions in Information and communication (2.1%), Other service activities (1.7%), Financial activities, insurance and related services (1.5%), Real estate activities (1.0%), Trade (0.8%), Transportation, storage and mailing (0.6%) and Public administration, defense, health and education and social security (0.5%).

In Industry, the 1.3% growth in Manufacturing industries stands out. On the other hand, the following fell: Construction (-1.7%), Electricity and gas, water, sewage, waste management activities (-1.4%) and Mining and quarrying industries (-0.3%).

From the expenditure approach, Household Consumption Expenditure expanded by 1.5%, Government Consumption Expenditure grew by 0.8% and Gross Fixed Capital Formation increased by 2.1% compared to the previous quarter.

Regarding the foreign sector, there was a drop in Exports of Goods and Services (-0.6%) and an increase in Imports of Goods and Services (1.0%) compared to the second quarter of 2024.

GDP grows 4.0% compared to the same quarter of 2023

Compared to the same period of the previous year, the GDP grew 4.0% in the third quarter of 2024. Value Added at basic prices increased 3.7% and Net Taxes on Products increased 6.4%.

Agriculture fell 0.8% compared to the same period of 2023. The Systematic Survey of Agricultural Production (LSPA) released in November showed that some products, whose harvests are significant in the third quarter, showed a drop in the estimated annual production and loss of productivity, such as sugarcane (-1.2%), corn (-11.9%) and oranges (-14.9%). These declines outweighed the good performance of crops such as cotton (14.5%), wheat (5.3%) and coffee (0.3%), which also had significant harvests in the period.

Industry grew by 3.6%, with emphasis on Construction (5.7%), corroborated by both the increase in employment and the production of typical inputs for this activity. Manufacturing industries (4.2%) expanded, influenced mainly by the manufacture of motor vehicles; other transportation equipment; furniture and chemical products.

Electricity and gas, water, sewage, and waste management activities grew by 3.7%, favored by higher electricity consumption, despite the more unfavorable tariff flags. There was a decline only in Mining and quarrying industries (-1.0%) due to the drop in petroleum and gas extraction.

Services grew by 4.1% compared to the same period in 2023, with emphasis on the increase in Information and communication (7.8%) and Other service activities (6.4%). The following activities also grew: Financial activities, insurance and related services (5.1%), Trade (3.9%), Real estate activities (3.1%), Transportation, storage and mailing (2.5%) and Public administration, defense, health and education and social security (1.7%).

In the third quarter of 2024, Household Consumption Expenditure grew (5.5%) for the fourteenth consecutive quarter. This result was mainly influenced by government programs and the improvement in the labor market. Government Consumption Expenditure grew 1.3% in the period.

Gross Fixed Capital Formation increased by 10.8% in the third quarter of 2024. The magnitude of this result is justified by the increase in the import of capital goods, in the domestic production of capital goods, in the development of software and in Construction.

In the foreign sector, Exports of Goods and Services increased by 2.1%, while Imports of Goods and Services grew by 17.7% in the third quarter of 2024. Among exports, those that recorded the best results were food products; other transportation equipment; extraction of metallic minerals; chemical products. In the import list, the most relevant increases occurred in chemical products; electrical machinery and materials; machinery and equipment; motor vehicles and services.

GDP accumulates growth of 3.3% until September

In the year to date until the third quarter of 2024, the GDP grew 3.3% compared to the same period in 2023. In this comparison, Agriculture (-3.5%) fell, while Industry (3.5%) and Services (3.8%) remained with positive rates.

The Industry activities that recorded positive results throughout the year were Electricity and gas, water, sewage, waste management activities (6.1%), Construction (4.1%), Manufacturing industries (3.2%) and Mining and quarrying industries (2.0%).

In Services, there was an increase in: Information and communication (6.2%), Other service activities (5.6%), Financial activities, insurance and related services (4.3%), Real estate activities (3.6%), Trade (3.5%), Public administration, defense, health and education and security (1.9%) and Transportation, storage and mailing (1.2%).

In four quarters, GDP accumulates growth of 3.1%, compared to the same period in 2023

The cumulative GDP in the four quarters ending in September 2024 showed growth of 3.1% compared to the four preceding quarters. This rate resulted from the increase in Value Added at basic prices (2.9%) and in Net Taxes on Products (4.2%). The result of Value Added in this type of comparison resulted from the following performances: Agriculture (-2.9%), Industry (3.4%) and Services (3.4%).

In the analysis of demand, Household Consumption Expenditure grew by 4.5%, Government Consumption Expenditure increased by 2.9% and Gross Fixed Capital Formation increased by 3.7%. In the context of the foreign sector, both Exports of Goods and Services (4.8%) and Imports of Goods and Services (10.3%) grew in the period.

GDP totals R$3.0 trillion in the third quarter

The Gross Domestic Product in the third quarter of 2024 totaled R$2,989.9 billion, of which R$2,575.9 billion refers to Value Added at basic prices and R$414.0 billion to Net Taxes on Products.

Investment Rate was 17.6% in the 3rd quarter

The investment rate in the third quarter of 2024 was 17.6%, which represents an increase in relation to that observed in the same period of the previous year (16.4%). The savings rate was 14.9% in the third quarter of 2024, lower than the 15.4% obtained in the same period of 2023.

Review of quarterly series

The Quarterly National Accounts routinely conduct a more comprehensive review when releasing the third quarter of each year, incorporating the new weights of the Annual National Accounts from two years earlier.

However, due to the project to change the base year of the System of Accounts from 2010 to 2021, additional work was carried out leading to the definition of a transition period in which the release of the annual series is temporarily suspended. Therefore, the review of the quarterly series was carried out only with updates to the data series adopted.

Table I.1 shows the review, for the year 2023, of the GDP growth rates and its main components from the perspectives of supply and demand.

Table I.1 - Review of growth rates for the year - 2023
  Before (%) Now (%) Change pp
Agriculture 15.1 16.3 1.2
Industry 1.6 1.7 0.1
Services 2.4 2.8 0.4
GDP 2.9 3.2 0.3
Household Consumption Expenditure 3.1 3.2 0.1
Government Consumption Expenditure 1.7 3.8 2.1
Gross Fixed Capital Formation -3.0 -3.0 0.0
Exports of Goods and Services 9.1 8.9 -0.2
Imports of Goods and Services (-) -1.2 -1.2 0.0
Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais.   

Table I.2 shows the review, for the first and second quarters of 2024, of GDP growth rates and its main components from the perspectives of supply and demand.

Table I.2 – Revision of quarterly growth rates against the same quarter of the previous year
  Q1 2024 Q2 2024
  Before (%) Now (%) Before (%) Now (%)
Agriculture -3.0 -5.5 -2.9 -3.3
Industry 2.8 3.0 3.9 4.0
Services 3.0 3.5 3.5 3.6
GDP 2.5 2.6 3.3 3.3
Household Consumption Expenditure 4.4 4.7 4.9 5.1
Government Consumption Expenditure 2.6 4.1 3.1 1.2
Gross Fixed Capital Formation 2.7 3.0 5.7 5.7
Exports of Goods and Services 6.5 6.1 4.5 4.3
Imports of Goods and Services (-) 10.2 10.0 14.8 14.7
Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais.