The Brazilian GDP increased 1.9% in the first quarter, following a slight drop in the last quarter of the year. This growth was higher than expected, but economic activity is expected to further slow down in 2023. The higher GDP was primarily a reflection of agriculture and livestock, which increased 21.6% following a record soy harvest. According to the National Federation of Industries, shows that manufacturing output is stable, but below of pre-pandemic levels. Most manufacturing industries are still feeling the effects of a more restrictive monetary policy, such as tighter credit, which impacts businesses and consumers.
The results experienced by the real estate industry in SP in Q2 confirm the continued high level of activity in São Paulo. Intense leasing activity and low new inventory delivered resulted on the drop of vacancy rate from 11.8% to 10.2%.Download Sao Paulo Industrial Market Report Q2 2023