Economic Activity of Small Businesses in Brazil Climbs 2.7% in October Amid Interest Rate Challenges

The economic activity of Brazil's micro and small businesses rose by 2.66% in October compared to September, driven by preparations for Black Friday and Christmas shopping seasons, according to data from SumUp's Microentrepreneur Index, exclusively reported by CNN Brasil. This increase reflects a seasonal warming of the economy as entrepreneurs bolstered stock and investments anticipating heightened consumer demand during key commercial events. However, the annual comparison reveals a 7.08% decline, largely attributed to Brazil's high basic interest rate of 15% per annum, which continues to constrain consumer purchasing power and limit stronger growth among small business owners.

Regional performance varied, with São Paulo showing a 2.39% increase, Rio de Janeiro 1.15%, Minas Gerais 1.65%, and Ceará 2.67%, while Bahia experienced a slight downturn of 0.36%. These figures consider seasonal adjustments, each state's share of GDP, and transaction volumes processed by SumUp's payment products. Lilian Parola, SumUp's economist and director for Latin America, stated that the interest rate remains a significant obstacle hindering more robust expansion despite positive short-term gains.

This growth update comes alongside Brazil's efforts to bolster the broader economy and tourism sector, as showcased at IBTM World 2025 in Barcelona, where entities like Embratur and Sebrae promote Brazil’s viability as a business events destination, supporting local economies and small businesses. As Brazil approaches a historic 8 million international visitors milestone in 2025, initiatives aim to sustain economic momentum with a strategic focus on sectors including technology and renewable energy (Sources: 149008, 149007).