Brazil Faces Economic Hurdles but Business Tourism Shows Strong Growth Prospects

Brazil's economic outlook presents a mix of difficulties and opportunities, particularly within the business tourism sector. FecomercioSP's President, Guilherme Dietze, highlighted that Brazil's GDP growth is projected at 2.6% for 2025, dropping to 1.8% in 2026 and 1.9% in 2027—figures trailing major global markets and IMF global averages. Key economic challenges include high interest rates, limited credit availability, reduced consumer spending, and a worsening fiscal deficit expected to reach R$ 41 billion despite record tax revenues. Public debt has also risen from 60% to nearly 80% of GDP since 2015. Potential reforms in taxation could impact services and tourism sectors further.

Despite these headwinds, the tourism industry, especially corporate travel, is expanding robustly. Passenger numbers hit record highs, hotel occupancy rates increased, and the average daily hotel rate rose from R$ 380 to R$ 420. Corporate travel spending surged to R$ 106 billion from January to September—the highest in history. FecomercioSP forecasts corporate travel will grow 6.5% in 2025 to R$ 136.3 billion and another 6% in 2026, reaching R$ 153 billion.

Dietze emphasized the need for collaboration across sectors and reliance on precise data to navigate these complex economic conditions while sustaining growth. This dual narrative underscores Brazil’s ongoing economic challenges alongside resilient growth in business tourism, signaling important prospects for the coming years.