Brazil's Industrial Production Growth Stagnates at 0.6% in 2025 Amid Economic Headwinds

Kathmandu. Brazil's industrial production grew by only 0.6 percent in 2025. This information was mentioned in a report published by the Federation of Industries of the State of Sao Paulo on Tuesday.

According to South America's largest industry organization, Brazil's industrial sector has been under continuous pressure due to US tariffs and a high base interest rate of 15 percent annually.

The federation warned that the strict monetary policy implemented by the government and external trade pressures have had a double impact on the industrial sector. These reasons have reportedly limited production and weakened export activities.

According to data released on Tuesday, exports to the United States decreased by 8.6 percent during the second half of 2025.

To address these challenges, the Federation of Industries has proposed measures such as income tax exemption for the working class, expansion of housing programs, and acceleration of credit flow for the private sector.

The federation estimates that Brazil's industrial sector will expand by only 0.6 percent in 2026, indicating that serious economic challenges will persist in the coming year.