Mar 3 • 19:00 UTC 🇧🇷 Brazil Folha (PT)

Agriculture, oil, and minerals prevented a lower GDP in 2025, but this story goes back a long way

Brazil's GDP increased by 2.3% in 2025, thanks mainly to agriculture, oil, and mining, despite a slowdown in economic growth compared to previous years.

Brazil's economy exhibited a modest growth of 2.3% in 2025, a figure that could have been lower if not for key sectors such as agriculture (32.83% contribution) and extractive industries (15.27%). The growth rate notably declined from 3.4% recorded in 2024, a trend that was anticipated due to rising interest rates and production capacity constraints. The private consumption also stalled in the latter half of 2025, negatively impacting consumer sentiment across the country.

Significantly, the contributions of the agricultural sector and extractive industries accounted for nearly half (48%) of the GDP growth, even though these sectors collectively represent less than 11% of Brazil's total GDP. In contrast, the manufacturing sector, often seen as a bellwether for economic health, delivered a negative contribution, with the construction sector showing little to no effect on overall growth figures. This deviation underscores the reliance on resources rather than manufactured goods as primary growth drivers during this period.

The service sector stood out as the largest contributor to GDP growth, accounting for 52.42%. However, it is characterized by relatively low productivity and is substantial in size, comprising 69.5% of total GDP. The evolving dynamics between these sectors indicate ongoing challenges in achieving balanced and sustainable economic growth in Brazil. As agricultural and extractive sectors continue to lead, there may be implications for long-term economic stability if diversification does not occur within the economy.

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