Rio de Janeiro Industrial Market Report

Global economic activity remains resilient, with sharper drops in inflation among the more developed economies. According to Brazil’s Institute for Geography and Statistics (IBGE), the nation’s economy grew 3.4% in 2024 driven by services and manufacturing industry.

However, signs of an economic slow-down, a challenging scenario regarding inflation, foreign exchange, and the job market have caused experts to review the growth expectations for 2025. The Central Bank expects GDP to grow by 2%.

As disclosed in early February in the first Monthly Survey of Industry published by the IBGE, Brazil’s Institute for Geography and Statistics, manufacturing output increased 3.1% in 2024 compared to 2023, however, the economy slowed down, with a drop in output associated with the drop in consumer and executive confidence, tighter monetary policy, and rising inflation.

The market for leasing industrial and logistics warehouses in Rio de Janeiro started the year quite sluggish, with a drop in gross absorption. Nevertheless, the vacancy rate dropped to 9.3%;