After almost six months of stagnation, the Brazilian economy saw a resurgence in the first quarter of 2024, with a 0.8 percent increase in GDP according to the IBGE. This growth exceeded market expectations and was driven by domestic demand, unlike the previous year’s reliance on exports.
The services sector and household consumption were key contributors to the growth, while agriculture faced a decline due to unfavorable weather conditions affecting crops like soybeans and corn. However, other crops like sugar cane, coffee, and oranges are expected to offset these losses.
Economists anticipate a positive performance from the agricultural sector for the rest of the year, with potential for stability even in the worst-case scenario. The shift towards domestic demand-driven growth aligns with expectations under the current administration, setting the stage for further economic recovery in Brazil.
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