Industrial Revenue in Brazil Surges 5.6% in 2024, Marking Highest Increase Since 2010
The Brazilian industrial sector celebrated a significant achievement in 2024, with real revenue climbing by 5.6% compared to 2023. This impressive growth, the highest since 2010, was reported by the National Confederation of Industry (CNI) on February 7, 2025.
The surge was driven by a robust labor market, government fiscal policies, and increased credit availability, which together boosted demand for industrial goods. A strong job market played a crucial role in this growth.
Employment in the industrial sector increased by 2.2% in 2024, supported by a vibrant labor market that fueled consumer spending and investment. The number of hours worked in the industry rose by 4.5% over the year, despite a slight drop in December.
The government’s expansionary fiscal policy was instrumental in stimulating demand. With more accessible financing, businesses invested in expansion and new projects, driving up demand for industrial products.
This fiscal support, combined with increased credit availability, maintained strong consumption and investment levels throughout the year. However, December 2024 saw some fluctuations.
Real revenue declined by 1.3% from November to December, and the total wage bill decreased by 0.5% during the same period. Despite these monthly variations, the average earnings of industrial workers saw an annual increase of 0.8%.
Industrial Sector Performance and Outlook for 2025
The Utilization of Installed Capacity (UCI) ended the year at 78.2%, down 1.9 percentage points from December 2023. Broader economic factors also influenced the industrial sector’s performance.
The General Price Index – Internal Availability (IGP-DI) rose by 0.11% in January 2025, accumulating a 7.27% increase over 12 months. The Broad Producer Price Index (IPA) increased by 0.03% in January 2025, mainly due to a drop in the prices of final goods.
The manufacturing industry’s GDP was projected to grow by 3.5% in 2024, driven by strong domestic demand and investment. However, the CNI expects this growth rate to slow to 2% in 2025, indicating a more moderate expansion pace.
However, this highlights the need for continued support and investment in the industrial sector to sustain its momentum and drive economic growth.
In conclusion, the industrial sector‘s performance in 2024 was marked by robust growth. This growth was driven by a strong labor market, fiscal expansion, and increased credit availability.
While monthly fluctuations and broader economic indicators suggest a complex outlook for 2025, continued investment and support will be crucial. These efforts are essential to maintain the sector’s growth trajectory.
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