1. GDP grows 0.9% in Q3

On Tuesday (3), the Brazilian Institute of Geography and Statistics (IBGE) announced that Brazil’s Gross Domestic Product (GDP) grew 0.9% in the third quarter of 2024 compared to the previous three months. This marks the 13th consecutive quarter of economic growth, consolidating a 4% expansion compared to the same period in 2023. The GDP totaled BRL 3 trillion, with BRL 2.6 trillion coming from Value Added (VA) at basic prices and BRL 414 billion from Taxes on Products net of Subsidies.

During the quarter, Industry (0.6%) and Services (0.9%) posted positive performances, offsetting a 0.9% decline in Agriculture. On the demand side, Household Consumption rose 1.5%, Government Consumption grew 0.8%, and Investments saw a significant increase of 2.1%. Over the past four quarters, the Brazilian GDP recorded a 3.1% increase, compared to 1.4% growth in the second quarter.

G1: PIB do Brasil cresce 0,9% no 3° trimestre de 2024, diz IBGE
IBGE: PIB cresce 0,9% no terceiro trimestre de 2024

2. Unemployment rate drops to 6.2%

Brazil’s unemployment rate fell to 6.2% between August and October 2024, the lowest ever recorded in the 152 rolling quarters of the Continuous PNAD (National Household Sample Survey) historical series, which began in 2012. The number of unemployed people stood at 6.8 million, the lowest since the quarter ending in December 2014. This result reflects a record high in the number of employed individuals in the country, reaching 103.6 million workers, including 53.4 million in the private sector, 39 million with formal contracts, and 14.4 million without formal contracts.

The drop in unemployment was also driven by an increase in the employment-to-population ratio, which reached 58.7% of the population aged 14 and older, the highest percentage ever recorded by the Continuous PNAD. This scenario highlights a labor market in strong recovery, with growth in both formal and informal jobs, reflecting the country’s expanding economic activity.

IBGE: Trimestre encerrado em outubro tem a menor taxa de desocupação em 13 anos: 6,2%

3. Chamber of Deputies approves urgency for government’s fiscal package

On Wednesday, the Brazilian Chamber of Deputies approved an urgency regime for two bills that are part of the fiscal adjustment proposed by the Ministry of Finance. With this approval, the proposals can be voted on directly in the House Plenary, bypassing the committee stage.

The bills under urgent consideration allow the government to limit the use of tax credits in cases of fiscal deficits and adjust minimum wage expenses within the limits of the current fiscal framework. Regarding the minimum wage, the proposal includes an increase above inflation, with adjustments ranging between 0.6% and 2.5%.

The government is racing against time to pass these measures before the end of the year, aiming to ease financial market concerns, signal fiscal responsibility, and realign economic expectations.

Câmara dos Deputados: Câmara aprova regime de urgência para duas propostas do ajuste fiscal
CNN Brasil: Câmara aprova urgência para análise de projetos do pacote de cortes de gastos

4. High-speed 5G band now available nationwide

The primary 5G band, known as 5G standalone (SA), became operational across Brazil on Monday (2). With this development, telecom operators can activate the technology in any city nationwide. However, the rollout will not be immediate across the entire country. According to the 2021 5G auction rules, operators must ensure coverage in all cities by the end of 2029.

Last week, the National Telecommunications Agency (ANATEL) and the Spectrum Management Entity (EAF) completed the signal “clean-up” process. This involved installing filters to prevent interference. The 3.5 GHz band, previously used for satellite and broadcast services like parabolic antennas, was cleared to enable the activation of 5G SA without risks of signal disruption.

Anatel: Faixa de 3,5 GHz para o 5G standalone está liberada em todos os 5.570 municípios brasileiros
G1: Anatel diz que operadoras já podem ativar o 5G standalone, de alta velocidade, em todo o Brasil; entenda a tecnologia

5. After 25 Years, Mercosur and the European Union sign historic agreement

The leaders of Mercosur and the European Union (EU) announced on Friday the long-awaited free trade agreement between the two blocs. The declaration was made during the Mercosur summit in Montevideo, Uruguay, at a ceremony that brought together South American heads of state and European representatives.

The final text, which will undergo legal review and translation, marks the conclusion of over two decades of negotiations and establishes one of the largest free trade zones in the world. It has the potential to integrate economies with a combined GDP of approximately $22 trillion and more than 700 million consumers.

While the announcement represents significant progress, the agreement still faces internal hurdles. Within the European Union, countries like France have raised concerns over sustainability issues and the protection of local markets. In Mercosur, a collective effort will also be required to ensure the treaty is approved by national legislatures.

The formal signing is expected to take place in 2024, paving the way for new economic and trade opportunities. However, experts warn that the agreement’s success will hinge on how both blocs address internal challenges and navigate the rising tide of global protectionism.

G1: Mercosul e União Europeia anunciam acordo de livre comércio depois de 25 anos de negociações