How Brazil’s industry is performing

Our partner and Chief Economist, Luis Otavio Leal, spoke with Valor Econômico about the latest performance of Brazil’s industrial sector.

Despite a 1.2% increase in March, Leal pointed out that, based on our estimates, the industry’s GDP likely contracted by 0.6% in the first quarter of 2025. While March brought a positive result, the outlook for the rest of the year remains one of gradual deceleration.

He attributes this scenario to a loss of economic momentum observed since late 2024, driven by tighter monetary policy and reduced fiscal stimulus. Leal also noted that the manufacturing segment, in particular, is expected to face greater challenges in the coming months.

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