Brazil faces economic growth and climate risks

Brazil is facing a complex intersection of economic growth, demographic shifts, and severe climate challenges. In the central-west region, Mato Grosso and Mato Grosso do Sul are seeing significant economic activity, with Mato Grosso reporting the second-highest increase in electricity consumption in the country and reaching R$ 40 billion in tax revenue earlier than expected in 2025.

However, these economic gains are threatened by a strong El Niño phenomenon, which is expected to persist until early 2027. Meteorologists warn of extreme heat and irregular rainfall, increasing the risk of wildfires in the Cerrado and Pantanal, and potentially disrupting the supply and pricing of fruits and vegetables. Climate scientists have expressed concerns that the current agribusiness model may be unsustainable due to its high water consumption and impact on river levels.

Demographically, new IBGE data shows rapid population growth in several Mato Grosso municipalities, such as Campo Verde and Lucas do Rio Verde, which will influence future federal funding via the Municipal Participation Fund. Additionally, the IBGE is promoting a new series of world maps that center Brazil and the Southern Hemisphere to challenge traditional cartographic representations.