Construction Industry: Resilience and the Challenge of Interest Rates in Brazil and PR
The construction industry in Brazil is a crucial driver of socioeconomic development, facing challenges primarily from high interest rates.
The construction industry serves as a vital engine for socioeconomic development in Brazil, generating jobs and facilitating a broad supply chain. In Paraná, the impact of this sector is particularly pronounced with 175,000 workers employed, including 55,000 in Curitiba alone. This sector not only constructs buildings but also plays a key role in enhancing citizenship and supporting the livelihood of numerous families in the state.
Recent data from the CBIC highlights the resilience of the construction sector, showing a 0.5% growth in construction GDP for 2025. Although this growth falls short of the initial projection of 1.3% due to a contractionary monetary policy and the highest interest rates seen in two decades, it represents a second consecutive year of expansion, marked by record-high launches and sales. The industry demonstrates a remarkable ability to adapt despite ongoing challenges.
However, the elevated interest rates continue to pose a significant structural challenge, increasing the cost of financing for both producers and buyers. The SindusconPR (Paraná Industry Union of Construction) emphasizes that addressing these high borrowing costs is crucial for sustaining the sector's growth and the economic wellbeing of families dependent on construction work.