Brazil regional economies show mixed industrial and export trends

Brazil's regional economies show divergent trends in industrial production and trade during the first half of 2026. The manufacturing sector faces challenges, with the CNI reporting a 1% drop in real revenue due to high interest rates, rising production costs, and increased imports. In Santa Catarina, industrial production fell by 1.7%, heavily impacted by the furniture and automotive sectors.

Conversely, several states reported strong growth. Mato Grosso saw industrial production rise, driven by wood products and food manufacturing, while its soybean producers have already commercialized 93% of the 2025/26 harvest. Mato Grosso do Sul also recorded a 4.5% industrial increase in the first semester, fueled by agro-industry and biofuels. Goiás reported a 2.9% annual growth in industrial production, led by vehicle manufacturing.

In the export sector, Paraná reached US$ 14.3 billion in cumulative exports through July, driven by soybean oil and machinery. Mato Grosso do Sul's exports grew 12.76% to US$ 7.21 billion. In the real estate market, Paraná's sector remains resilient with record sales and rental values, while Porto Alegre saw an 18% increase in medium and high-standard property launches despite high interest rates.