Brazil's economy grew 3.4% in 2024, presenting opportunities

Brazil's economy grew by 3.4% in 2024, the best performance since 2021. This growth was driven mainly by the services sector, industry, and a notable increase in consumer spending. Analysts expect some challenges ahead in 2025, including high interest rates and fiscal uncertainties. Investors are keen to understand how the current economic conditions will affect their decisions. Despite experiencing growth, sectors like construction, oil, and gas could offer investment opportunities due to a strong dollar. However, concerns about global trade and domestic fiscal issues remain. Consumer spending surged by 4.8%, benefiting retail and durable goods sectors. Government measures, such as tax exemptions for lower income earners, may also support growth. Yet, high-interest rates could hinder some sectors, making investment strategies essential for managing risks. Investments in sectors like construction and technology reflect increased capital expenditure. Despite the growth, companies are being cautious about new investments due to uncertain returns. Overall, strategies for balancing safety and profitability differ across short, medium, and long-term investments.