Brazil’s forests generated an economic output valued at BRL 47.9 billion in 2025 – the highest figure ever recorded in Brazil, up 6.7 percent from the previous year.

The data cover natural or planted forests and are part of a survey released Thursday (Sep. 24) by the statistics bureau IBGE.

The institute takes into account silviculture – when production comes from planted areas – and extractive activities, which refer to originally natural green areas.

Silviculture soars

Silviculture jumped 8.6 percent from 2024 to 2025, reaching BRL 41 billion. Plant extraction moved in the opposite direction and fell 3.1 percent, totaling BRL 6.9 billion.

In the late 1990s, silviculture and extractive activities alternated as the main drivers of forest production. Since then, however, production from planted areas has skyrocketed, reaching 85.6 percent in 2025, leaving only 14.4 percent for plant extraction.

The survey notes that, since 2019, the economic value of silviculture has grown by 165 percent. According to the institute, this is due to technological advances. In 2025, planted forests totaled 10.4 million hectares (104,000 km²).
 

Eucalyptus and cellulose

Of this area, 78.6 percent is planted with eucalyptus, a fast-growing tree maturing in about seven to eight years, used primarily in the manufacture of cellulose, a key raw material for paper production.

Brazil’s silviculture makes the country the world’s largest producer and exporter of cellulose, a position it has held since 2022, when it surpassed Canada.

The study also reports that Brazil’s global prominence is driven by climatic conditions and soil that are favorable to rapid forest growth, as well as “investments in sustainable practices, which make it highly competitive in the international market.”

In 2025, Brazil produced 22.2 million metric tons of cellulose, 12.7 percent more than in the previous year.

In terms of value, the figure was USD 10.2 billion – a 3.9 percent decline over the past year. As a commodity, the price of cellulose is directly influenced by the global market.

The IBGE explains that prices fell due to “global oversupply, a slowdown in Chinese consumption and the resulting increase in inventories, and exchange rate factors, such as the appreciation of the real.”

Cellulose was Brazil’s eighth-largest export in 2025. The top three exports, in order, were petroleum, soybeans, and iron ore.

Food products

The report also found that food products accounted for BRL 2.2 billion in production value.

Half of this amount came from açaí (251,000 metric tons), with two-thirds of this production (66.7%) coming from the Northern state of Pará.

Yerba mate ranked second among non-timber products, with BRL 562.3 million. Of all the yerba mate harvested in the country, 88.4 percent came from the state of Paraná, in South Brazil.

Petrobras announced on Wednesday (Sep. 23) that it had signed a memorandum of understanding for strategic cooperation in the oil and gas sector in Mozambique, a country on the southeast coast of Africa.

The agreement was signed with the National Hydrocarbons Company (ENH), the Mozambican government’s commercial arm for oil and gas exploration, production, processing, marketing, and distribution.

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Among the document’s objectives are joint efforts in studies, evaluation, development, and marketing, as well as the exchange of knowledge and technical expertise. The agreement is valid for two years and may be extended.

Focus on natural gas

Mozambique, a country with a population of about 30 million, shares with Brazil the legacy of having been a Portuguese colony, which explains why the two countries speak the same language.

According to the National Petroleum Institute of Mozambique, a state agency, the country stands out as a major source of liquefied natural gas (LNG).

Foreign companies are already operating in the country, including France’s TotalEnergies, US-based ExxonMobil, China National Offshore Oil Corporation (CNOOC), China National Petroleum Corporation (CNPC), Italy’s Eni, Portugal’s Galp, and South Africa’s Sasol.

Petrobras in Africa

This week’s move marks another step by Petrobras toward strengthening its presence on the African continent.

The state-owned company operates in Ivory Coast, Namibia, São Tomé and Príncipe, and South Africa. In August 2026, it began negotiations for exploration blocks in Ghana, on the west coast of Africa.

This expansion into Africa marks a return to the region. In the early 2000s, the company operated in countries such as Nigeria, Tanzania, Angola, Benin, Gabon, and Namibia, but those stakes were later sold.

In addition to Brazil and Africa, Petrobras operates in Argentina, Bolivia, Colombia, and the United States.

Petrobras has signed an exploration contract to search for oil off the equatorial margin of Côte d’Ivoire. The Brazilian company will have the right to explore eight offshore exploration blocks.

The contract with the West African country was signed Thursday (Sep. 17) in Abidjan, the economic capital and seat of government. The Brazilian company was represented by Sylvia Anjos, Petrobras’ executive director of exploration and production.

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The contracts are under a production-sharing arrangement. Petrobras will operate in the country through its subsidiary Petrobras Netherlands B.V. (PNBV), which will hold a 90 percent stake in the blocks and serve as the exploration operator. The remaining 10 percent will be held by the Ivorian state-owned company Petroci Holding.

According to a statement from Petrobras, the initiative is in line with the strategy to replenish oil and gas reserves through exploration in new frontier areas, both in Brazil and abroad.

High potential

The company emphasizes that the agreements secure a stake in exploration areas “with high potential on the African equatorial margin.”

The company’s president, Magda Chambriard, stated that the new deal gives Petrobras a “significant presence” in Côte d’Ivoire, “a country located in a region with high exploration potential, with geological characteristics similar to those of our sedimentary basins.”

“We will apply our experience and technical expertise to these blocks, and we are confident that, with them, we will be able to unlock all the possibilities we believe exist on the African Atlantic margin,” she added.

Petrobras around the world

The contracts in Côte d’Ivoire mark a step forward for Petrobras in oil and gas exploration in Africa and around the world.

On the continent, the state-owned company also operates in Namibia, São Tomé and Príncipe, and South Africa. In August 2026, the oil giant began negotiations for exploration blocks in Ghana.

This expansion into Africa marks a return to the region. In the early 2000s, the company operated in Nigeria, Tanzania, Angola, Benin, Gabon, and Namibia, but those interests were later sold.

The Americas

In addition to Brazil and Africa, Petrobras is involved in oil exploration and production in Argentina, Bolivia, Colombia, and the US.

In June 2026, the company signed a memorandum of understanding to establish strategic and technical cooperation with the state-owned company Pemex, with a focus on the Gulf of Mexico.

In the first half of 2026, Petrobras achieved the highest profit margin among a group of major international oil companies, surpassing giants such as Saudi Aramco and the US companies ExxonMobil and Chevron.

The numbers can be found in a study released Wednesday (Sep. 16) by the United Federation of Oil Workers (FUP), which brings together unions representing more than 105,000 workers in the oil industry. The survey is coordinated by economist Cloviomar Cararine of the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), a research institution linked to the labor movement.

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• Petrobras negotiates oil exploration in Ghana.
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The study compares the financial results of major oil companies since 2020. This is the first time Petrobras has topped the profit margin rankings.

Margin vs. profit

Profit is the amount of money left over for the company after costs, expenses, and taxes have been deducted. Profit margin, on the other hand, gauges the company’s efficiency by showing what proportion of revenue (total sales – such as fuel, crude oil, and petroleum products) actually turns into profit.

For example, if a company has a net margin of 15 percent, it means that for every BRL 100 in sales, BRL 15 remains as net profit for the business after all costs, expenses, and taxes have been paid.

In the Dieese ranking, Petrobras tops the list, with a margin of 29.15 percent in the first half of 2026. During that period, the Brazilian state-owned company reported net income of BRL 85.1 billion.

The profit margins of the major oil companies surveyed are as follows:

• Petrobras – 29.15 percent;
• Saudi Aramco – 25.48 percent;
• Chevron – 18.01 percent;
• ExxonMobil – 16.33 percent;
• BP (UK) – 14.83 percent;
• Equinor (Norway) – 12.84 percent;
• Shell (Anglo-Dutch) – 9.94 percent;
• TotalEnergies (France) – 9.44 percent.

From 2020 through 2025, Saudi Aramco had the highest profit margin. In all of those years, Petrobras ranked second, with the exception of 2024.

The data are based on information disclosed by the companies themselves. The researcher did not include Chinese companies, such as Sinopec and PetroChina in the tracking.

Factors behind efficiency

The economist believes this unprecedented result reflects the company’s “high operational efficiency.”

The performance, he added, was sustained by increased production, rising international oil prices (a result of the war in the Middle East), reduced overhead costs, and the fact that it remains an integrated company that both produces and refines oil.

Cloviomar Cararine argues that this combination gives Petrobras a greater ability to weather crises than its international competitors.

In the second quarter of 2026, Petrobras’ oil and natural gas production reached an all-time high, totaling a daily 3.34 million barrels of oil equivalent (boe, a unit derived from converting natural gas into oil energy equivalent, which allows the two products to be combined).

About 30 percent of what was produced was sold overseas (996,000 barrels per day).

The company also set an all-time record for the refinery utilization factor, reaching 101.2 percent. The higher it is, the closer the refineries are operating at full capacity.

After suffering from unfavorable weather conditions in 2024, Brazil’s agricultural sector reached 345.4 million metric tons of grains, legumes, and oilseeds in 2025. This volume is 18.2 percent higher than that recorded the previous year, when production was hampered by the effects of El Niño.

The value of production – which combines the physical volume produced with the prices charged at sale – totaled BRL 927.2 billion, an 18.4 percent increase compared to 2024.

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The data were released Thursday (Sep. 17) by the statistics bureau IBGE.

Increase in cultivated area

The survey also shows that, for the first time, Brazil surpassed the 100-million-hectare mark for cultivated area. The 100.6 million hectares recorded in 2025 represent a 4.4 percent growth compared to the previous year.

Soybeans

According to the survey, soybeans accounted for more than one-third (34%) of the value of Brazilian agricultural production (BRL 315.2 billion), a performance that maintains Brazil’s position as the world’s largest producer and exporter of this oilseed.

The soybean harvest grew by 14.4 percent year-on-year, reaching 165.2 million metric tons – 20.8 million metric tons more than in 2024.

IBGE explains that the international landscape contributed to the stabilization of soybean prices.

“The current situation shows that the trade war between the US and China led China to increase its demand for Brazilian soybeans, keeping domestic prices for the commodity stable throughout the final months of the year.”

The top agricultural products by production value in 2025 are:

Soybeans – BRL 315.2 billion;
Corn – BRL 122.1 billion;
Sugarcane – BRL 108.9 billion;
Coffee (beans) – BRL 100 billion;
Cotton (seed cotton) – BRL 40.6 billion.

Brazilian President Luiz Inácio Lula da Silva on Wednesday (Sep. 16) signed into law a bill establishing the National Policy on Critical and Strategic Minerals. The law allocates up to BRL 7 billion in investments through incentives for projects involving the research, extraction, and processing of these minerals.

“Mining requires intensive investment and production cycles that often span 40 years. Therefore, predictability and stability – especially fiscal stability – are vital to attracting long-term investment,” said Pablo Cesário of the Brazilian Mining Institute.

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The law establishes the Mineral Activity Guarantee Fund (FGAM) with a BRL 2 billion contribution from the federal government for projects and activities related to the production of critical and strategic minerals. The fund may only support projects deemed a priority under the policy.

Brazil’s Minister of Mines and Energy Alexandre Silveira noted that the new law play a key role in helping Brazil gain a better understanding of its resources. “Brazil will gain in-depth knowledge of its resources and preserve its decision-making authority over its production chains,” he said.

The Geological Service of Brazil, he went on to say, will see its budget increase from BRL 8 million to BRL 300 million to fund soil research.

Sovereignty

After signing the bill, President Lula advocated for investment in training new professionals for a market that promises to expand. He invited universities and federal institutes to participate in developing new degree programs “so that we are not second to anyone in the world in terms of training.”

The president emphasized the importance of having a developed mining market, with industrialization and refining as well as production technology in Brazil. He then stated that there are “traitors to the nation” who wanted to sell critical minerals in their raw state to the US “for a song, just as they did with iron ore.”

“We will not allow history to repeat itself. Let Brazil’s enemies understand once and for all – our sovereignty is not for sale. Brazil’s wealth has only one owner – the Brazilian people.”

Critical minerals

Lula also signed the decree establishing the National Council for the Industrialization of Critical and Strategic Minerals. The council will be responsible for coordinating, planning, and monitoring national policy. Its role will be to propose public policies and actions aimed at developing production chains for critical and strategic minerals.

Critical minerals and rare earth elements are indispensable supplies for the technology, automotive, and defense industries, as well as for achieving the energy transition.

Critical minerals are those whose supply may involve various risks – geographic concentration of production, dependence on foreign sources, geopolitical instability, technological limitations, supply disruptions, and difficulty in finding substitutes.

Rare earth elements are a specific group of critical minerals. They consist of 17 chemical elements found scattered throughout nature, which makes them difficult to extract. They are essential for wind turbines, smartphones, electric cars, and defense systems.

With approximately 21 million metric tons, Brazil’s rare earth reserves are the second largest ever mapped in the world, trailing only China, which holds approximately 44 million metric tons. However, only about 25 percent of the country’s territory has been mapped, indicating enormous untapped potential.

The definition of which minerals are strategic or critical changes from country to country. The list may also change over time, depending on technological advances, geological discoveries, geopolitical shifts, and changes in demand. Rare earth elements, in turn, may also be considered critical or strategic minerals depending on the context.

Despite tensions surrounding the war in the Middle East and the El Niño, Brazil’s Central Bank cut interest rates for the fifth consecutive time.

The Monetary Policy Committee unanimously reduced the Selic rate – Brazil’s benchmark interest rate – by 0.25 percentage points, to 13.75 percent per year.

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• Brazil’s August inflation comes in -0.32%, lowest in four years.
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“The external environment remains uncertain due to the ongoing armed conflicts in the Middle East and uncertainty regarding monetary policy in some advanced economies. This scenario calls for caution on the part of emerging economies in an environment marked by increased volatility in asset and commodity prices,” the statement said.

Inflation

The Selic rate is the Central Bank’s main tool for keeping official inflation – as measured by the Broad National Consumer Price Index (IPCA) – under control. In August, the index stood at -0.32 percent, the lowest level in four years. On a 12-month rolling basis, the index fell to 4.22 percent, down from 4.44 percent in July.

In the latest Monetary Policy Report, released in late June by the Central Bank, the monetary authority raised its IPCA forecast for 2026 from 3.9 to 5.2 percent, but the estimate will be revised due to the recent drop in inflation.

Market forecasts are less pessimistic. According to the Focus market readout – a weekly survey of financial institutions released by the Central Bank – official inflation is expected to close the year at 4.9 percent, above the upper limit of the target range of 4.5 percent. Before the start of the war in the Middle East, market estimates stood at 3.95 percent.

Selic

The benchmark interest rate is used in government securities trading within the Special System for Settlement and Custody (Selic) and serves as a guide for other interest rates in the economy. By raising it, the Central Bank curbs excess demand that puts upward pressure on prices, because higher interest rates make credit more expensive and encourage saving.

By lowering the benchmark interest rate, the Monetary Policy Committee makes credit cheaper and encourages production and consumption, but weakens inflation control. To cut the Selic rate, the monetary authority must be certain that prices are under control and not at risk of rising.

*Luciano Nascimento contributed to this article.

A study conducted by the Center for Research on Macroeconomics of Inequalities (MADE) at the University of São Paulo (USP) revealed that online gambling reduced consumption, withdrawing BRL 120 billion to BRL 141 billion from economic activity – equivalent to 0.9 to 1.1 percent of the country’s GDP – in the year 2025.

“To put this magnitude into perspective, the estimated loss corresponds to somewhere between 40 and 50 percent of the economy’s total growth in 2025 and is about five times greater than estimates of the impact of US tariffs on Brazilian GDP. Even when taking into account estimates of direct and indirect jobs created in connection with online betting platforms, the picture remains virtually unchanged,” the study concludes saying.

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The study estimates that this reduction in economic activity results in a loss of tax revenue ranging from BRL 31.1 billion to BRL 54.8 billion.

“Even after deducting the approximately BRL 9 billion collected directly from gambling platforms, the net effect on public finances would still be negative by at least BRL 22 billion, potentially reaching as high as BRL 46 billion.”

According to the researchers, this figure represents 10 to 20 percent of the total public health budget in São Paulo in 2025 – indicating that, even though gambling generates direct revenue, the loss of economic activity it causes more than offsets that revenue.

The study concluded that, from an economic perspective, the problem of gambling is not limited to individual effects but also has macroeconomic consequences; by diverting income from households – especially lower-income ones – gambling can increase inequality, reduce demand, and significantly impact GDP, in addition to reducing tax revenue and affecting public finances.

Declines in electricity bills, food prices, and transportation costs caused August’s official inflation rate to close out the month at -0.32% – the lowest rate since August 2022, when the index reached -0.36%.

In July, Brazil’s consumer prince index IPCA, which is used to gauge the country’s official inflation, stood at 0.07 percent. In August 2025, it was -0.11 percent. The data were released Friday (Sep. 11) by the statistics bureau IBGE.

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August’s negative change brought the index’s 12-month cumulative total to 4.22 percent – the lowest figure since March 2026 (4.14%). In July, the cumulative total had stood at 4.44 percent.

Last month’s figure came in below market estimates. Last Tuesday’s (8) Focus market readout – a Central Bank survey of financial market participants – projected August inflation at -0.23 percent. For the end of 2026, the market expects inflation to be five percent.

The inflation target set by the National Monetary Council is three percent, with a tolerance of 1.5 percentage points (p.p.) above or below, meaning a range of 1.5 to 4.5 percent.

Since the beginning of 2025, the target assessment period has covered the immediately preceding 12 months, rather than just the figure reached at the end of the year (December). The target is considered missed if inflation exceeds the tolerance range for six consecutive months.

Drivers

Of the nine groups surveyed, four showed deflation in August.

• Food and beverages: -0.34% (impact of -0.07 p.p.);
• Housing: -1.87% (-0.29 p.p.);
• Household goods: 0.64% (0.02 p.p.);
• Clothing: 0.12% (0 p.p.);
• Transportation: -0.86% (-0.17 p.p.);
• Health and personal care: 0.23% (0.03 p.p.);
• Personal expenses: 1.30% (0.13 p.p.);
• Education: 0.47% (0.03 p.p.);
• Communication: -0.09% (0.00 p.p.).

Housing experienced its deepest deflation since the start of the Real Plan in 1994. The reason for this is the Itaipu Bonus – a discount consumers received on their monthly electricity bills, which fell by an average of 7.63 percent. The bonus consists of distributing the positive balance from the trading account of Itaipu, a state-owned hydroelectric plant, which is credited to electricity bills.

Of all the components of August’s IPCA, the electricity bill was the factor that most significantly pulled the index downward.

Food

The decline in food and beverage prices marked the third consecutive drop. In July, prices fell by 0.67 percent; in June, by 0.24 percent.

Food is the group with the greatest weight in the official inflation, accounting for 21.5 percent of Brazilians’ monthly consumption basket.

Index

The IPCA measures the cost of living for households with incomes between one and 40 minimum wages. In total, prices are collected for 377 sub-items, comprising products and services. The figures are calculated across ten metropolitan regions across Brazil.

Brazilian beef exports fell 27.1 percent in volume in August compared to the same month in 2025, as per data released Friday (Sep. 4) by the Ministry of Development, Industry, Trade, and Services.

In value terms, the decline was 19.7 percent, with USD 1.2 billion exported during the month, compared to USD 1.5 billion a year earlier.

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The decline comes after the foreign purchase quota set by China was reached. China limits the volume of meat that can enter the country to 1.106 million metric tons without the imposition of an additional 55 percent tariff.

The quota

According to Herlon Brandão, director for statistics and foreign trade studies at the Ministry of Industry, Commerce, and Services, the reduction in shipments had been expected as the limit set by China drew closer.

Despite the monthly decline, year-to-date performance for 2026 remains positive. From January through August, Brazil’s total exports of chilled and frozen meat grew 4.7 percent in volume and 22.3 percent in value compared to the same period last year.

Sales to Asia

China also influenced the overall performance of Brazilian exports to Asia. In August, shipments to the continent fell 19.2 percent compared to the same month in 2025. In value terms, the decline was 10.9 percent.

From January through August, however, the picture was different – Brazilian exports to Asia rose 15 percent in value and 3.3 percent in volume.

Brazil’s balance of trade posted a surplus of USD 7.4 billion in August, up 23.8 percent from the same month in 2025.

This is the third-largest trade surplus for the month of August, surpassed only by the record set in August 2023 (USD 9.6 billion) and August 2021 (USD 7.7 billion).

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The performance was mainly driven by growth in exports, which rose nearly 12.2 percent during the month, as per data released by the Ministry of Development, Industry, Trade, and Services.

The total tade flow – the sum of exports and imports – reached USD 58.9 billion, the highest figure ever recorded for the month of August in the current time series.

From January through August, the trade balance posted a surplus of USD 55.3 billion:

• Exports – USD 250.9 billion (+10.3%);
• Imports – USD 195.5 billion (+6.1%);
• Trade balance – USD 55.3 billion (+28.2%).

The balance is the second-highest for the period since the time series began, in 1989. It is surpassed only by January through August 2023, when the surplus stood at USD 62.4 billion.

The suspension on imports of animal products from Brazil into the 27 member countries of the European Union (EU) took effect Thursday (Sep. 3). The measure applies to beef, pork, and chicken, as well as honey, fish, and eggs, and could affect up to USD 2 billion per year in Brazilian exports.

However, the decision is not necessarily permanent. Brazil is working to demonstrate that it does meet European requirements. In addition, an EU audit is evaluating the country’s chicken and honey supply chains.

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The restriction stems from the bloc’s view that Brazil’s mechanisms for controlling the use of antimicrobials in animal production are insufficient. The European Union has not identified any cases of contamination or health violations in Brazilian shipments.

The measure primarily affects the beef and chicken sectors, which account for a significant share of Brazilian exports to the European market.

Ban

The European Union has its own rules governing the use of antimicrobials in animal husbandry.

These medications can be used to treat infections, but the bloc prohibits their use to promote animal growth. It also does not allow antimicrobials intended for the treatment of infections in humans to be used in animals.

Europe claims that Brazil’s system for controlling these substances does not provide sufficient guarantees to verify compliance with the rules.

The Brazilian government, in turn, disputes this view and asserts that national legislation already restricts the use of antimicrobials as growth promoters, in line with international standards.

A sanitary problem?

The issue is not regarded as a sanitary problem. This is one of the main concerns raised by the decision.

The European ban was not announced due to the identification of contamination or a specific sanitary problem in Brazilian meat. The matter relates to the control and traceability mechanisms for the use of antimicrobials.

Therefore, the measure does not mean that Brazilian meat has been deemed unfit for consumption.

Brazil exports animal products to dozens of nations and remains authorized to sell to other markets that continue to approve Brazilian products.

Impact

The estimated potential impact amounts to USD 2 billion per year, taking into account the affected products.

Beef alone accounted for some USD 1.7 billion in Brazilian exports to the EU in 2025, as per the data in the report.

Even though the European market represents a limited share of Brazil’s total beef exports, it is considered strategic because it purchases higher-value-added cuts.

The problem for the sector is not simply finding another buyer. Different markets typically demand specific cuts, which makes it difficult to immediately replace sales destined for Europe.

Reaction

The Brazilian government has been negotiating with the European Union since the measure was announced. Among the steps taken are:

• a ban on certain antimicrobials;
• the creation of additional control regulations;
• a proposal for a transition period, which was rejected by the EU;
• the development of a traceability protocol; and
• verification of control over the use of antimicrobials during production.

According to the Brazilian Association of Meat Exporting Industries (ABIEC), all member companies authorized to export to the European Union have adopted the private protocol developed by the sector. It stipulates that animals must be tracked from birth through slaughter, enabling proof that certain antimicrobials were not used during their lifetime. The suspension may be lifted, but there is no set date for the resumption of exports.

Audits

EU officials will conclude an audit in Brazil this Friday on the chicken and honey production chains. The results will be reviewed by European authorities. This may take two months.

If the EU determines that the requirements have been met, Brazil may be reinstated on the list of countries authorized to export.

As for honey, Brazilian exports to the EU doubled in the first half of 2026, reaching USD 6.3 million, the Brazilian Association of Honey Exporters (Abemel) reported.

The growth was partly due to additional tariffs imposed by the US, which have made that market more expensive for Brazilian exporters, prompting companies to redirect sales to Europe.

One of the risks assessed by the industry is cross-contamination. This can occur, for instance, when beehives are located near livestock farming areas where certain products are used.

For beef, the resumption of operations may take longer, as the new system requires tracking throughout the animal’s entire life cycle. A head of cattle that begins to follow the new rules today may take 24 to 36 months to reach slaughter.

Therefore, even if the EU lifts the ban, it may take years for the beef supply chain to adapt to the new requirements.

In the case of chicken, the production cycle is much shorter – some 45 days from hatching to slaughter.

Outlook

The poultry sector expects that sales to the European Union may resume as early as 2026, depending on the outcome of the audit.

If the ban remains in place, the production that would have been destined for European markets could be redirected to the Brazilian market, countries in the Middle East, and other international markets.

Brazil exports chicken meat to about 150 countries, which provides alternatives for part of its production.

Partner countries

The ban does not automatically apply to all of Brazil’s trading partners.

Brazil’s Mercosur partners – Argentina, Paraguay, and Uruguay, for instance – remain authorized to export animal products to the European Union.

The decision also comes amid trade discussions between the EU and Mercosur. As a result, representatives of the Brazilian agribusiness sector describe the measure as protectionist, while European officials maintain that it is simply a matter of complying with regulatory requirements.

Brazilian industrial production grew 0.2 percent from June to July, ending two consecutive months of decline. As a result, the sector has accumulated a 1.1 percent increase so far in 2026 and a 0.6 percent expansion over the past 12 months.

Compared to July 2025, the country’s industrial output fell by 0.5 percent. The quarterly moving average, which helps identify the sector’s recent trajectory, contracted by 0.8 percent.

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The data are part of the monthly industrial survey, released Wednesday (Aug. 2) by the statistics bureau IBGE.

According to the data, the cumulative 12-month increase (0.6%) represents a “slight slowdown” compared to the cumulative figure through June 2026 (0.7%).

Trends

The survey reveals that three of the four major economic categories showed growth from June to July:

• durable consumer goods – 3.2%;
• capital goods – 2.4%;
• semi-durable and non-durable consumer goods – 0.5%;
• intermediate goods – -0.2%.

Diffusion index

The diffusion index showed that 69.6 percent of the 789 products surveyed posted positive performance from June to July. This is the second-highest figure of the year, second only to March (80.6%).

The Brazilian economy grew 0.5 percent in the second quarter of 2026 compared with the first quarter. According to IBGE, Brazil’s government statistics agency, GDP reached BRL 3.4 trillion during the period. The data were released on Tuesday (Sep. 1).

Compared with the second quarter of 2025, the total value of goods and services produced in the country rose by 2 percent.

Notícias relacionadas:

• Unemployment drops to 5.3%, lowest for the quarter ending in July.
• Brazil’s public debt rises 0.22% in July, exceeds BRL 9.2T.
• Brazil federal tax revenue rises 8.97% in July.

Over the past four quarters, GDP expanded by 1.9 percent.

The Focus bulletin, a Central Bank survey of financial market institutions released on Monday (Aug. 31), projects 1.92 percent GDP growth for 2026.

Production

GDP can be calculated from the perspective of production, which analyzes economic activity, or expenditure, which includes consumption and investment.

From the production perspective, agriculture and livestock stood out, with a 2.8 percent increase from the first to the second quarter. Over 12 months, the increase reached 6.2 percent.

Manufacturing rose 0.1 percent from the first to the second quarter and 1.4 percent over 12 months, with the extractive industry standing out, surging 3.4 percent quarter-on-quarter.

The services sector, which accounts for the most employment in the economy, grew 0.2 percent quarter-on-quarter and 1.7 percent over 12 months. The information and communication subsector led the increase, at 2.1 percent.

Gross Fixed Capital Formation, an indicator of investment, grew 1.2 percent during the quarter.

Demand

From the demand side, government consumption rose 0.4 percent, while household consumption declined by 0.4 percent.

In the external sector, exports fell 0.8 percent, while imports rose 1.8 percent compared with the first quarter of 2026.

Brazil’s estimated population reached 214.2 million on July 1 this year, according to a new study by the statistics bureau IBGE. The data highlight that the growth rate is slowing down.

The country’s population grew by 0.37 percent compared to the previous year, marking a decline from the 2024–2025 period, when it stood at 0.39 percent.

Population by region

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41.6 percent live in the Southeast – 89 million people;
26.8 percent in the Northeast – 57.4 million;
14.7 percent in the South – 31.5 million;
8.8 percent in the North – 18.9 million;
8.1 percent in the Central-West – 17.4 million people.

Most populous states

São Paulo accounts for 21.6 percent of Brazil’s population – 46.1 million people;
Minas Gerais, 10 percent – 21.5 million;
Rio de Janeiro, 8.0 percent – 17.2 million.

Conversely, the three least populous states are in the North and have fewer than 1 million inhabitants each – Acre, with 887,800 people (0.41 percent of Brazil’s total population); Amapá, with 809,900 people (0.38%); and Roraima, with 761,000 people (0.36%).

Population by region

41.6 percent live in the Southeast – 89 million people;
26.8 percent in the Northeast – 57.4 million;
14.7 percent in the South – 31.5 million;
8.8 percent in the North – 18.9 million;
8.1 percent in the Midwest – 17.4 million people.

Most populous states

São Paulo accounts for 21.6 percent of Brazil’s population – 46.1 million people;
Minas Gerais, 10 percent – 21.5 million;
Rio de Janeiro, 8.0 percent – 17.2 million.

On the other hand, the three least populous states are in the North and have fewer than 1 million inhabitants each – Acre, with 887,800 people (0.41 percent of Brazil’s total population); Amapá, with 809,900 people (0.38%); and Roraima, with 761,000 people (0.36%).

Growth

The highest population growth rates were recorded in the states of Roraima, Santa Catarina, and Mato Grosso – 3.01 percent, 1.54 percent, and 1.46 percent respectively.

These were also the only states to report rates above one percent. The lowest rates, meanwhile, were observed in the states of Rio de Janeiro (0.01%), Alagoas (0.01%), and Rio Grande do Sul (0%).