LUSA 11/08/2025

Lusa - Business News - Brazil: OECD praises productive modernisation strategy

Paris, Nov. 7, 2025 (Lusa) - The OECD indicated on Friday that Brazil is moving forward with a profound, long-term productive transformation, aligning industrial modernisation and the energy transition, underpinned by robust public financing and strong international cooperation.

According to the report Economic Outlook for Latin America prepared by the Organisation for Economic Cooperation and Development (OECD) along with the Economic Commission for Latin America (ECLAC), the European Commission and CAF, the Development Bank of Latin America and the Caribbean, the South American giant is committed to an agenda aimed at increasing competitiveness, strengthening sustainability and reducing regional disparities.

The document highlights the Brazil 2050 Strategy, an initiative to tackle structural challenges such as climate adaptation and the technological revolution, which is articulated with sectoral plans such as the New Industry Brazil (NIB) 2024-2033, focused on strengthening innovation and industrial competitiveness through financial and technical tools to boost decarbonisation and digitalisation.

Another strategy is the National Energy Transition Plan (PNTE) 2024-2034, which aims to transform the energy matrix by expanding renewable energies and creating green hydrogen hubs.

Another noteworthy component is the Growth Acceleration Programme (PAC), which aims to boost the economy through massive investments in physical and digital infrastructure to accompany productive modernisation.

The Brazilian government has launched the Mais Produção Plan, with $50 billion (€43.3 billion) between 2024 and 2026 to finance the acquisition of technology, expand research and support business digitalisation.

A large part of the resources is channelled through the National Development Bank, which offers subsidised credit, lines of financing for innovation, and tax incentives, with an emphasis on micro, small, and medium-sized enterprises.

In parallel, the PAC has earmarked more than $250 billion (€216 billion) for infrastructure projects, particularly green projects and digital connectivity.

The recently created National Industrial and Technological Development Fund also supports strategic initiatives through subsidies and low-interest loans.

Brazil complements this internal drive with a growing network of international alliances.

The Portuguese-speaking country was selected by the Climate Investment Funds to implement a $230 million (€199 million) industrial plan to develop low-carbon technologies.

In 2024, Brazil launched the Industrial Decarbonisation Centre with the United Kingdom, focused on knowledge exchange to accelerate decarbonisation.

The OECD also highlights other policies, such as the Partnership for the New Industrial Revolution within the BRICS (Brazil, Russia, India, China and South Africa), the five main emerging economies, and cooperation with Canada and China to strengthen the competitiveness of small and medium-sized enterprises.

The organisation concludes that Brazil has built a robust architecture to accelerate its productive transformation, supported by clean energy, industrial innovation, modern infrastructure and strategic public financing.

The challenge, the OECD points out, will be to ensure coordinated and sustained execution of these plans to take full advantage of the opportunities of the green and digital economy.

DGYP/ADB // ADB.

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