Brazil grew more than expected in 2024 and Santa Catarina economy, as it has companies prepared to meet greater demand, managed to grow more in sales than the country’s average
In a year with Brazilian economic activity driven by domestic consumption and also influenced by foreign markets, Santa Catarina’s economy was one of those that ended 2024 with a performance above the national average. Data from the IBGE surveys that are used to calculate the Gross Domestic Product (GDP) showed that last year the state’s industrial production grew by 7.7% compared to 2023, the highest average in the country, and Santa Catarina also stood out in terms of annual growth in services (6.1%) and expanded retail (7.2%).
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With a diversified and innovative sector, Santa Catarina closed 2024 with growth in industrial production more than double that of the country, which stood at 3.1%. It was Santa Catarina’s second recent leadership in the sector. The other was in 2021, in the middle of the pandemic, with an increase of 10.3%.
The industrial sectors that grew the most in Santa Catarina last year were machinery and equipment (17.1%), electrical machinery and materials (16.9%), clothing (10.3%), metallurgy (10.1%), wood products (8.9%), textile products (7.1%), chemical products (6.6%) and rubber and plastic products (6.5%).
SC ECONOMY IN SERVICES
In the services sector, Santa Catarina also performed well last year. It grew by 6.1%, almost double the national average of 3.1%. Considering the biggest growths among the states, Santa Catarina was in fifth place, behind states with smaller economies such as Amazonas (10.2%), Amapá (7.7%), Sergipe (7.1%) and Espírito Santo (6.2%).
The biggest increase was recorded in the tourism group, up 9% over the year. In second place was the transportation and postal services group with 8.3%, followed by family services, 5.4% and information and communication services, 5.1%.
The IBGE survey on expanded retail also showed a good performance last year, with growth of 7.2% in the sector compared to 2023. It was also above the Brazilian average, which reached 4.1%. Expanded retail includes sales of vehicles, motorcycles and parts, construction materials and wholesale food. In restricted retail, which does not include these three factors, SC grew by 4.1% in 2024, the highest growth in the last four years.
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The biggest increases compared to the previous year came from the vehicles, motorcycles and parts group (17.2%), followed by pharmaceutical articles (11.9%), furniture and household appliances (8.8%) and wholesale food, beverages and tobacco (5.8%).
EVALUATIONFIESC
The president of the Federation of Industries of Santa Catarina (Fiesc), Mario Cezar de Aguiar, noted that one of the sectors that drove the rise in Santa Catarina’s industry was capital goods, which produces machinery and equipment for other industries.
In the assessment of the president of the Federation of Trade in Goods, Services and Tourism (Fecomercio -SC), Hélio Dagnoni, the good results of 2024 reflected the improved pace of economic activity in the state.
The state’s business sector is celebrating the good results of 2024, but is wary of 2025, when a number of sectors are already facing a downturn in activity. It will be a year of greater challenges for everyone due to high interest rates, high inflation and difficulties in foreign markets due to the new US import tariffs.
