BrazilChapters
With a population over 216 million people in 2025, Brazil is not only by far the largest and most populous country in South America but also boasts the largest economy in Latin America and the 8th largest worldwide (GDP over $2 trillion, 2025).
Historically known for its vast natural resources, Brazil has increasingly shifted its focus toward innovation-driven industries in recent years. In 2025, the country unveiled a new industrial policy aimed at accelerating technological development, enhancing competitiveness, and fostering sustainability. This ambitious strategy is fueled by a $60 billion investment commitment through 2026. Additionally, the government’s strong support for innovation is evident in its allocation of $4 billion specifically for AI-related business projects.
As Brazil embraces both technological and sustainable growth, its evolving industrial landscape offers significant opportunities for businesses in key sectors such as new technologies/AI, fintech, cleantech/energy, and healthtech, all of which are becoming critical drivers of the economy. With strategic investments and forward-thinking policies, the country is creating an environment favorable to innovation and expansion across a wide range of industries.
Source: Multiple sources (IMF, World Bank, the CIA World Factbook)
Key indicators
- Area
- 8,515,770 km2
- Population
- 216 million (IMF, 2025)
- Government type
- federal presidential republic
- Languages
- Portuguese (official and most widely spoken language)
- GDP
- $2.3 trillion (2025, current US$)
- Growth rate
- 3.2% (est. 2025)
- HDI
- 89
- Capital
- Brasilia
Macroeconomic indicators
Real GDP is projected to grow by 2.4% in 2025, before moderating to 1.7% in 2026, and rebounding to 2.2% in 2027. Domestic demand will be the main driver of growth. Private consumption will be supported by continued job creation and strong wage growth. High interest rates and global policy uncertainty will continue to weigh on investment in 2026, and higher tariffs on many exports to the United States, if maintained, will eventually weigh on exports. Inflation is expected to ease gradually, remaining above target but within theupper bound of the tolerance band from the second quarter of 2026.
Meeting fiscal targets will be key to maintaining public debt on a sustainable path, reducing inflationary pressures and strengthening confidence. This will require additional efforts to identify durable consolidation measures, including on the expenditure side, and more structural fiscal reforms to reduce budget rigidities. Monetary policy will remain tight amid persistent inflationary pressures but is expected to ease gradually from 2026. Structural reforms to remove regulatory bottlenecks in professional services, network industries and digital markets will be crucial to boost productivity and long-term growth.
Source: OECD Economic Outlook - Brazil
IFM Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
4.594 |
4.367 |
5.187 |
3.972 |
3.273 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
-1.275 |
-2.656 |
-2.507 |
-2.262 |
-2.175 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
-27.933 |
-57.89 |
-56.577 |
-51.861 |
-52.479 |
|
Exports of goods and services, Volume, Free on board (FOB), Percent change Percent (Units) |
9.444 |
-0.329 |
3.0 |
2.5 |
3.5 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
3.242 |
3.396 |
2.4 |
1.942 |
2.238 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
10350.437 |
10252.019 |
10577.855 |
10709.355 |
11236.321 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
2191.137 |
2179.413 |
2256.91 |
2292.69 |
2413.082 |
|
Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change Percent (Units) |
0.802 |
10.039 |
4.223 |
0.74 |
2.13 |
|
Unemployment rate |
7.975 |
6.925 |
7.099 |
7.291 |
7.36 |
Estimates
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 08.11.1978 (Memorial 1980, A No.15, p.212)
- Effective as of 01.01.1981 (Memorial 1980, A No.15, p.212)
Air Services agreement
Since 2020 : https://legilux.public.lu/eli/etat/leg/loi/2020/11/17/a926/jo
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of Statec.
Contact points in Brazil
Embassy of the Grand Duchy of Luxembourg in Brazil
Chargée d'affaires en pied: Mrs Jill ENGEL
SHIS QL 12, conjunto 5, casa 18
Lago Sul
71630-255 Brasília/DF .
Brazil
Tel.: (+55) 61 3551 7741
E-Mail: brasilia.amb@mae.etat.lu
Website: brasilia.mae.lu
Honorary consuls
Belo Horizonte
Mr Paulo Henrique PINHEIRO DE VASCONCELOS
Honorary Consul with jurisdiction over the States of Minas Gerais and Espirito Santo
Rua Kepler 441
sl8 - Bairro Santa Luzia
30360-240 - Belo Horizonte, MG
Brazil
Tel.: (+55) (31) 3503 1890
Email: belohorizonte@consul-hon.lu
Curitiba
Ms Andréa Menezes VIANNA
Honorary Consul with jurisdiction over the State of Paraná
Rua Benjamin Lins, 999 – Batel
80420-100 - Curitiba, PR
Brazil
Tel.: +55 41 3527-9615
Email: curitiba@consul-hon.lu
Manaus
Mr Bernardino José MARQUES Junior
Honorary Consul with jurisdiction over the States of Amazonas and Roraima
Av. Carvalho Leal, 1688
Cachoeirinha, Manaus-AM
CEP: 69065-000
Brazil
Tel.: +55 92 2121-2525
Email: manaus@consul-hon.lu
Palhoça
Ms Karen Francesca SCHWINDEN
Honorary Consul with jurisdiction over the State of Santa Catarina
Rua José Maria da Luz, n2827, sala 8 - Centro
88131-000 - Palhoça, SC
Brazil
Tél.: +55 (48) 3374-7801
Email: palhoca@consul-hon.lu
Porto Alegre
Ms Tania BIAN
Honorary Consul with jurisdiction over the State of Rio Grande do Sul:
Rua Barão do Triunfo
576/201 - Azenha
90130-100 -Porto Alegre, RS
Brazil
Tel.: +55 (51) 3217-0991
Email: portoalegre@consul-hon.lu
Recife
Mr Tiago LIMA CARNEIRO
Honorary Consul with jurisdiction over the States of Paraìba and Pernambuco:
Avenido Agamenon Magalhães, 1470, sala 301- Torreão
52030 – 210 Recife
Pernambuco – Brazil
Tel.: + 55 81 309 71936
Email: recife@consul-hon.lu
Rio de Janeiro
Ms Marie Christiane H. MEYERS
Honorary Consul with jurisdiction over the State of Rio de Janeiro:
Rua Francisco Otaviano 87, apt. 203
22080-040 Rio de Janeiro, RJ
Brazil
Tel.: (+55) 21 25 21 78 35
Email: riodejaneiro@consul-hon.lu
São Paulo
Mr Pierre Emile Reuter
Honorary Consul with jurisdiction over the State of São Paulo
Rua do Chá 21 apto 31
05688-080 Vila Morumbi, São Paulo
Brazil
Tel.: (+55) (11) 2789 0727
Email: saopaulo@consul-hon.lu
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Brazil
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for Brazil
Other useful links
- CIA World factbook on Brazil
- Apex Brasil: Brazilian Trade and Investment Promotion Agency
- European Commission The Latin America IPR SME Helpdesk
- Awex – Wallonia Export & Investment Brazil
- Invest- export hub.Brussels Brazil
- World Bank Doing Business in Brazil
- The European Union and Brazil – Trade Relations