Brazil Industrial Output Slumps to 0.6 Percent
The industrial powerhouse—South America's most influential business confederation—attributed the stagnation to relentless pressure from American trade levies combined with the central bank's punishing 15 percent benchmark lending rate.
FIESP cautioned that the government's restrictive monetary stance, coupled with international trade barriers, has created a devastating double blow to Brazilian manufacturers. Production capacity remains constrained while overseas sales continue deteriorating.
Tuesday's figures showed American-bound shipments plummeted 8.6 percent during 2025's latter six months.
Confronting the industrial crisis, FIESP unveiled a recovery blueprint encompassing tax relief for wage earners, residential construction program enhancement, and streamlined private lending mechanisms.
The federation projects another lackluster 0.6 percent advance for Brazilian industry in 2026, signaling persistent obstacles throughout the upcoming year.
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