Brazilian Industry Closes 2024 with Growth in Nearly All Regions

The Brazilian industrial sector recorded significant growth in 2024, with production increasing in 17 of the 18 regions surveyed by the Monthly Regional Industrial Survey (PIM Regional).

This data was released on January 11 by the Brazilian Institute of Geography and Statistics (IBGE). This widespread regional expansion contributed to a 3.1% rise in national industrial production.

It matched the growth rate of São Paulo’s industrial sector, which accounts for nearly one-third of the country’s total industrial output. Santa Catarina led regional growth with a 7.7% increase, followed by Rio Grande do Norte at 7.4% and Ceará at 6.9%.

Other states also exceeded the national average, including Pará (5.7%), Mato Grosso (5.4%), and Pernambuco (4.6%). Paraná (4.2%), Amazonas (3.6%), and Mato Grosso do Sul (3.5%) also surpassed the national average.

Positive results were also observed in São Paulo (3.1%), Bahia (2.7%), Goiás (2.6%), and several other states. However, Espírito Santo was the only region to report a decline, with a 1.6% drop.

Brazil’s Industrial Growth and Year-End Slowdown

Bernardo Almeida, an IBGE researcher, highlighted that São Paulo’s performance significantly influenced the national results but emphasized that other regions also played a vital role in driving growth.

He attributed much of this success to favorable macroeconomic conditions during most of the year. These conditions included lower inflation and interest rates. However, December presented a stark contrast to the annual trend, with national industrial production declining by 0.3% compared to November.

Seven out of fifteen regions surveyed showed decreases during this period, including an 8.8% drop in Pará and a 4.1% decline in Paraná. São Paulo’s production also fell slightly by 0.2%.

Almeida explained that this downturn reflected a shift in macroeconomic conditions during the fourth quarter of 2024, marked by higher inflation and elevated interest rates aimed at curbing price increases. These factors directly impacted industrial activity, slowing production across several regions.

While the year-end slowdown tempered optimism, the broad-based growth throughout most of 2024 highlights the resilience of Brazil’s industrial sector. This occurred amid fluctuating economic conditions.