Brazil

How is Brazil’s economy structured?

Brazil has a highly diversified economy with a strong industrial base, a highly productive agricultural sector and a dynamic services industry.

Through its new industrial policy ("Nova Indústria Brasil,"), the country is placing greater emphasis on reindustrialization, digitalization, decarbonization and the expansion of strategic value chains, creating additional opportunities for cooperation for technology-oriented companies.

Brazil also has a highly productive agricultural sector and abundant natural resources. The country remains one of the world's leading producers and exporters of soybeans, sugar, meat, orange juice and coffee, while at the same time gaining importance in agricultural technologies, digital farming and sustainable food production. In addition, Brazil is a major supplier of iron ore, bauxite, lithium, niobium and energy resources, and has successfully established itself as a leader in renewable energy and biofuels.

Brazil's economic activity is concentrated in several highly developed states, particularly São Paulo, Rio de Janeiro and Minas Gerais. São Paulo plays a pivotal role and is one of Latin America's leading industrial, financial and innovation hubs.

What business opportunities does Brazil offer?

Brazil is not only a major domestic market but also an important sourcing market for industrial goods, raw materials and agricultural products. The country has developed into a key manufacturing location for international companies, many of which produce locally and supply additional markets throughout the region from Brazil.

The economic framework is further shaped by Brazil's membership in Mercosur, a customs union comprising Brazil, Argentina, Paraguay and Uruguay with a common external tariff. In addition, the EU–Mercosur Free Trade Agreement, which entered into provisional force on 1 May 2026, opens up further long-term business opportunities.

Business opportunities are expanding beyond traditional industrial sectors into innovative future-oriented industries, including additive manufacturing, digitalization, Industry 4.0, agricultural technology, smart farming, GreenTech, renewable energy, sustainable mobility and environmental and resource technologies.

What are the economic relations with Bavaria and Germany?

Germany and Brazil have maintained a strategic partnership since 2008, based on a joint action plan for bilateral and multilateral cooperation. Key areas include the economy, energy, environmental protection, climate, science and technology, as well as cooperation within international organizations.

Cooperation between Bavaria and Brazil is particularly strong at the state level. Since 1997, Bavaria has maintained a cooperation agreement with the State of São Paulo. Other important partner states include Santa Catarina, Rio Grande do Sul and Pernambuco.

Brazil is one of Bavaria's most important trading partners in the Americas, with Bavarian exports significantly exceeding imports.

Investment ties are also close and of considerable importance. Bavarian companies have a strong presence in Brazil and make a significant contribution to the country's economic development. A substantial share of German foreign direct investment in Brazil originates from Bavaria. Bavarian companies operating in Brazil generate significant revenues and provide employment for a large number of people.

Several hundred Bavarian companies are active in Brazil, particularly in mechanical engineering, electrical engineering, environmental technology, medical technology and the chemical industry.

These economic relations are complemented by close cooperation in science, research and innovation. Numerous partnerships between universities and research institutions, as well as joint projects in future technologies, supported, among others, by the Bavarian Academic Center for Latin America (BAYLAT), strengthen knowledge transfer and technological cooperation between Bavaria and Brazil.