SAO PAULO, Feb. 3 (Xinhua) -- In 2025, Brazil's industrial output expanded by a meager 0.6 percent, according to a report released on Tuesday by the Federation of Industries of the State of Sao Paulo (FIESP).
As the largest business conglomerate in South America, FIESP pointed out that the industry was under constant pressure from U.S. tariffs and a high annual benchmark interest rate of 15 percent.
The federation issued a warning that the contractionary monetary policy implemented by the government, along with the external trade pressures, has had a dual impact on the Brazilian industrial sector. These factors have not only restricted production levels but also hampered export activities.
Data released on Tuesday revealed that exports to the United States dropped by 8.6 percent in the second half of 2025.
In response to these challenges, FIESP has proposed several initiatives, including income tax exemption for the working class, the expansion of the housing program and measures to accelerate credit availability for private sector.
The federation forecast a weak 0.6 percent expansion in Brazilian industry in 2026, indicating significant headwinds in the coming year. ■
