Brazil's Manufacturing Sector Slips in Global Ranking

The Brazilian manufacturing sector faces a challenging landscape, with a second consecutive year of decline compared to international peers. According to data from the United Nations Industrial Development Organization (UNIDO) and the Institute for Studies on Industrial Development (IEDI), Brazil’s transformation industry contracted by 0.1% in Q1 2026 relative to the same period last year, placing it at 69th position among 90 countries. In 2024, the country ranked 33rd, dropped to 47th in 2025, and now continues this downward trajectory. Even with a 1.5% growth registered by UNIDO comparing Q1 of the current year with the last quarter of 2025, such improvement has been insufficient to reverse the long-term decline in global ranking. Analysts highlight that recent growth is primarily concentrated in commodity-related activities, such as oil derivatives and agricultural and mineral products, without indicating a broad recovery across the industrial sector. Rafael Cagnin, an economist at IEDI, points out the persistence of high interest rates in Brazil’s economic context, which restrict the development of industries more dependent on credit, especially those with complex production chains.