HIGHLIGHTS

• In 2023, the Gross Domestic Product (GDP) reached R$10.9 trillion, a growth of 3.2% compared to 2022. The per capita GDP reached R$51,693.92.
• Services grew 2.8%, Industry grew 1.7% and Agriculture grew 16.3%.
  Final consumption grew 3.4%, with household final consumption growing 3.2% and government final consumption expenditure growing 3.8%.
• In 2023, the Gross Fixed Capital Formation (GFCF) fell 3%, after having increased 1.1% in 2022. The investment rate was 16.4%.
• In 2023, ten out of 12 activity groups remained stable or grew. In 2022, nine out of 12 activity groups had grown or remained stable.
• The IBGE publication “System of National Accounts: Brazil 2023 – Technical Notes” presents the results of the series of National Accounts with reference to 2010, updated until 2023, based on the System of Quarterly National Accounts. Due to the transition to the new 2021 base, the detailed release was temporarily suspended, with only aggregate estimates remaining.

In 2023, the Brazilian Gross Domestic Product (GDP) grew 3.2%, adding up to R$10.9 trillion. The added value of services grew 2.8%, driven by Financial activities, insurance and related services (7.5%) and the per capita GDP was R$51,693.92. The data are from the System of National Accounts: Brazil, released today (6) by the IBGE.

Gross value added grew 3.4%. In terms of impact, 1.9 p.p were due to the growth of Services and 0.4 p.p, to the growth of Industry, which together represented more than 93% of the indicator. On the other hand, Agriculture grew 16.3%, contributing positively with 1.1 p.p.

Household consumption grew 3.2%

In 2023, final consumption expenditure, which encompasses consumption expenditure of households, governments and non-profit institutions, grew 3.4%. Government final consumption expenditure, which encompasses expenditure on goods and services offered by the government to the community, grew 3.8%. Household consumption, which represents 62.9% of the GDP, grew 3.2%.

If, from a supply perspective, the agricultural sector was the driver, from a demand perspective it was Household consumption. It is important to divide the domestic demand from the foreign sector, because of the 3.2% of growth, 2.0 p.p. were from the domestic demand, mainly from Household consumption, and 1.3 p.p., from the foreign demand, which also rose, as Brazilian exports of goods and services grew more than imports.

Gross Fixed Capital Formation fell 3% in 2023

The Gross fixed capital formation (GFCF) of the Brazilian economy fell 3% in 2023. The current value of the GFCF reached the level of R$1.8 trillion and the investment rate, which consists of the ratio between Gross fixed capital formation and the GDP, was 16.4%, a drop compared to 2022 (17.8%).

Redesign of the System of National Accounts time series

“In this publication, the System of National Accounts will be based on the results of the System of Quarterly National Accounts, as the IBGE has a project to redesign the time series of the System of National Accounts, from the base year 2010 to base year 2021. As a result, we are publishing the updated tables only until 2023, whenever information is available, and the technical notes,” explains Rebeca Palis, coordinator of National Accounts at the IBGE.

The requirement to carry out this project leads to the definition of a transition period in which the publication of the more detailed time series is temporarily suspended. Therefore, such results will not include the detail provided by the Supply and Use Tables (SUT) and the Integrated Economic Accounts (IEC) published annually. However, the most aggregated estimates will be maintained, published with the current methodology, and released with a special emphasis on their preliminary nature, which will be based on the System of Quarterly National Accounts that discloses SUT 12 activities by 12 products and the Quarterly Economic Accounts with the aggregated national economy.