Retrospective 2024: Economic Challenges and Transformations

Introduction to the Transformations of 2024

In 2024, Brazil experienced a series of significant changes that shaped the country's economic and political landscape. Donald Trump's rise in the US elections brought hope and uncertainty, while the Brazilian market adjusted to a new reality of high interest rates and rising inflation.

Economic Impacts: Selic and Inflation

With the Selic rate rising, the Brazilian Central Bank faced increasing pressure to balance inflation, which was also rising. The decision to increase the Selic rate was an attempt to contain prices, but it brought with it unintended consequences for economic growth. The combination of high inflation and high interest rates resulted in a challenging environment for investors and consumers, generating a wave of uncertainty in the market.

Political Challenges and External Crises

In addition to economic issues, 2024 was marked by political adversities. Former President Trump, despite his complicated trajectory, continued to face attacks from his opponents, generating a tense political atmosphere. This tension not only influenced US domestic politics, but also reverberated in emerging countries such as Brazil. At the same time, the escalation of hostilities between Iran and Israel impacted global markets, reflecting the weaknesses of the international order. These events, accompanied by the increase in the outflow of foreign investors from Brazil, highlighted the divergences within the Central Bank and its response to the international economic scenario.

The dollar rate reached R$6.10, further complicating the economic situation for those who depended on foreign imports and inputs, not only due to price volatility, but also due to distrust in local monetary policies.

In addition, the country was shaken by tragedies in different regions, such as the events in the state of Rio Grande do Sul, which severely impacted local communities. These events were a reminder of the fragility of social institutions in the face of economic and governance crises.

Final Reflections and Wishes for 2025

As we approach 2025, the lessons learned in 2024 prompt us to reflect on the resilience of the Brazilian people in the face of adversity. The economic and political challenges we face should not be seen merely as obstacles, but as opportunities to rebuild and strengthen our country’s governance and economy. As the end-of-year festivities approach, we wish everyone a prosperous 2025, full of hope and new achievements. Let us face the future with determination and the will to make a difference.