North Leads Brazil’s 2024 Growth at 4.8% as South Region Follows at 4.2%
The Central Bank of Brazil released its Regional Bulletin today showing solid economic growth across all five regions during 2024, though with a noticeable slowdown in the final quarter.
The North region led with 4.8% growth according to the Regional Economic Activity Index, followed by the South at 4.2% and Northeast at 4.1%. The Southeast and Center-West regions grew by 3.2% and 2.9% respectively.
Only the Center-West saw reduced growth compared to 2023, primarily due to weaker agricultural performance. The South region demonstrated notable resilience despite facing severe floods in May that temporarily disrupted economic activities in Rio Grande do Sul.
The region maintained momentum through year-end when other regions began cooling. Industrial activity expanded broadly, with manufacturing, construction, and utilities leading the way.
The services sector outperformed its 2023 results with improvements across various subsectors. Agriculture contracted following an exceptionally strong 2023.
Labor markets remained tight throughout the year. Unemployment rates fell across all regions while real average income growth, though less dramatic than in 2023, stayed strong in most areas except the North.
At the state level, Pará and Santa Catarina achieved the strongest growth at 5.6% each, with Ceará close behind at 5.5%. Rio de Janeiro (2%), Espírito Santo (2.8%), and Minas Gerais (3%) recorded more modest results.
The Central Bank noted that the national economy began cooling noticeably in the second half of 2024, particularly in sectors sensitive to economic cycles.
Despite this late-year deceleration, Brazil’s overall economic performance significantly surpassed initial projections, demonstrating resilience despite rising interest rates that reached 13.25% by early 2025.
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