MINISTRY OF FINANCE PREDICTS 6% GROWTH IN AGRICULTURAL GDP THIS YEAR

The Brazilian Gross Domestic Product (GDP) is expected to grow 1.5% in the first quarter of 2025, with the agricultural sector leading the way at 12.8% due to increased soybean, corn, and rice production. The GDP of services is also predicted to expand by 0.3%, boosted by agricultural activity and a real adjustment to the minimum wage. However, the industry is expected to contract by 0.2%, owing primarily to a decline in the manufacturing sector. Although GDP increased in the first quarter, the year-on-year comparison indicates a slowdown, with growth of 3% in the first quarter compared to 2024, lower than the 3.6% recorded in the fourth quarter of the prior year. The SPE maintained its GDP growth projection of 2.3% for 2025 and expects consistent growth in the second half of the year, with 6% rise in agriculture, 2.2% in industry, and 1.9% in services.
Source: Uagro (*Translated by Ia Niani)