Brazil extractive and naval industries see significant investment growth

Investments in Brazil's extractive industry have grown by 1,366.42% between 1997 and 2024, according to a study by Fundação Getulio Vargas (FGV). This growth is approximately 15 times higher than the 88.02% increase seen in the manufacturing sector during the same period. Extractive investments reached R$ 9.4 billion in 2024, up from R$ 630.2 million in 1997.

Researchers attribute the manufacturing sector's slower pace to high tax burdens, high interest rates, and less exposure to global markets. In contrast, the extractive industry has benefited from stronger connections to global commodity markets, such as iron ore, and saw a 120.2% productivity increase between 1995 and 2021.

Simultaneously, the Brazilian naval industry is positioning itself to capture a share of a projected US$ 120 billion investment cycle in oil and gas exploration and production between 2026 and 2030. Petrobras expects to allocate US$ 9.7 billion for shipbuilding during this window. To attract international partners and technology, a delegation of over 30 representatives from 20 Brazilian companies recently participated in the SMM maritime trade fair in Hamburg, Germany.