Brazil returns to the financial “top ten”: the 2023 GDP grew an surprising 2.9% within the first yr of Lula's authorities | EUROtoday

Luiz Incio Lula da Silva has causes to rejoice: Brazil's GDP grew by 2.9% in 2023, triple what is anticipated on the finish of 2022.

The agricultural complicated, which grew by 15.1%, the most important enhance in 27 years, was decisive for Brazil to regain a spot among the many ten largest economies on this planet, after closing 2022 in eleventh place. Today with a GDP of two.1 trillion {dollars}the South American big is the ninth largest financial system on the planet.

“Raw materials set the tone for growth in 2023,” highlighted economist Juliana Trece, from FGV Ibre (Brazilian Institute of Economics of the Getulio Vargas Foundation).

Trece additionally highlighted the position of mining, which grew by 8.7%. There are, nonetheless, warning indicators: the info present a slowdown in financial exercise within the second half, after the enhance in agriculture, extra concentrated within the harvests at the start of the yr. In the fourth quarter of 2023, GDP stagnated (0%) in comparison with the instantly previous three months.

“In 2021, the country appeared in twelfth position, with an economy that produced 1.6 trillion dollars,” he recalled. The globe.

“According to another criterion, which is GDP by purchasing power parity – which takes into account not only the exchange rate conversion, but also the differences in the cost of living in each country, that is, what goods can be purchased with a certain amount of money – Brazil was the eighth largest economy on the planet in 2022,” added the Rio newspaper.

Fernando Haddad, finance minister in Lula's leftist authorities, welcomed the two.9% determine, though he warned towards points to enhance.

“Investment was the variable that least accompanied the evolution of GDP last year, which was driven by agriculture, household consumption, consumption by Public Administrations and exports. Investment allows growth without inflationary risk, because demand increases, but the supply of goods also increases when this investment matures,” he famous.

On January 1, 2023, Lula started the third of his governments on the head of the most important financial system in Latin America. Much of that yr was spent arguing with the president of the Central Bank, Roberto Campos Neto, over his coverage of excessive rates of interest, properly above inflation. Later within the yr, the top of the financial authority started to decrease these charges.

Haddad admitted his hope that this decreasing of charges will positively affect funding and the robustness of the GDP.