MercoPress. South Atlantic News Agency

Brazil: IBGE announces economy grows 2.9% in 2023

“Agriculture grew by 15.1% last year, pushed by the growth in soybean and corn production,” IBGE's Rebeca Palis said

According to a report released Friday by Brazil’s Institute of Geography and Statistics (IBGE), the gross domestic product (GDP) in South America's largest country grew by 2.9% in 2023 driven by a record 15.1% expansion in the agricultural sector. It was the most significant leap since the beginning of the series in 1995. Industry (1.6%) and services (2.4%) also saw an improvement.

“Agriculture grew by 15.1% last year, pushed by the growth in soybean and corn production—two of Brazil’s most important crops,” explained IBGE researcher Rebeca Palis was quoted by Agencia Brasil as saying. “The mineral extraction industry, with the extraction of oil and iron ore, also grew significantly.”

“Two other important economic activities are also worth mentioning: electricity—water, gas, and sewage—and financial intermediation,” she added.

From a demand perspective, growth was driven by household consumption (3.1%), government consumption (1.7%), and exports (9.1%). The 1.2% drop in imports also contributed to the result. Gross fixed capital formation, i.e. investments, on the other hand, fell by 3% over the year.

From the third to the fourth quarter of the year, the GDP remained stable. Comparing the fourth quarter of 2023 with the same period last year, an increase of 2.1% was reported.

With these results, Brazil became once again one of the top ten largest economies in the world, according to a report by the consulting firm Austin Ratings quoted by Xinhua. After analyzing data already released by 54 countries, Brazil, which in 2022 was the eleventh largest economy in the world according to data from the International Monetary Fund (IMF), surpassed Canada and Russia to become the ninth-largest economy in the world. The study said the United States was the world's largest economy in 2023, followed by China and Germany. Mexico ranked 12th.

Brazilian authorities foresee an economic expansion of 2.2% this year: “In summary, the 2023 GDP result corroborated the gradual improvement in expectations throughout the year. On the supply side, the growth of the agricultural sector stood out, as well as the continuity of the services sector. On the demand side, it is worth highlighting the increase in household and public administration consumption,” the Planning Ministry said in a statement.

“Brazil's GDP grew by 2.9% in 2023, according to the IBGE. Remember that some people's forecast was 0.9%? We have grown much more than expected and we will continue working to grow with quality and improve the lives of all,” Brazilian President Luiz Inácio Lula da Silva highlighted on social networks.