Brazil aims to modernise its industrial base while further expanding its transport infrastructure and energy sector. Renewable energy and energy efficiency play a central role in this transformation. The country already generates around 90 percent of its electricity from low-carbon or renewable sources, with hydropower still playing a major role and wind and solar power expanding rapidly. In 2024, renewables accounted for 88.2 percent of Brazil’s electricity mix; in 2025, low-carbon sources accounted for 89 percent of electricity generation.

The demand for advanced technologies and innovative solutions remains high. To return to a more sustainable growth path, Brazil needs greater transparency, structural reforms and more investment in infrastructure, innovation and education. As a member of the BRICS+ and the G20, Brazil is an important partner for Germany in international economic policy. Brazil is also Germany’s only strategic partner in Latin America. In April 2026, Germany and Brazil held their third bilateral intergovernmental consultations in Hanover, where both sides reaffirmed and further deepened this partnership.

Potential for Bilateral Cooperation

Brazil is Germany’s most important economic partner in South America and an important destination for German investment. Conversely, Germany is Brazil’s key economic partner within the European Union. Bilateral trade already amounts to around EUR 21 billion per year, underlining the significance of the partnership while also showing that there is still considerable room for growth.

German companies export mainly chemical products, machinery, vehicles and automotive parts to Brazil. However, the local sales generated by German companies in Brazil far exceed export volumes. German-Brazilian economic relations are based on shared values and a long tradition. Their foundations were laid by German immigration, which began in Brazil more than 200 years ago. Some major German companies have been active in the country for well over a century, while many others have been present since the 1950s. Today, more than 1,500 German companies operate in Brazil, including major industrial players such as BASF, Bayer, Bosch, SAP, Siemens, Volkswagen and ZF Friedrichshafen.

German companies have contributed significantly to the development of Brazilian industry and continue to hold strategic positions in key sectors. They are deeply embedded in Brazilian society and are active not only in business, but also in education, culture and innovation.

The medium-term prospects for expanding economic cooperation between Germany and Brazil remain positive. The modernisation of Brazilian industry, the expansion of transport and energy infrastructure, and the further development of the healthcare sector all require high-quality technologies. At the same time, interest in sustainable solutions is growing. German industry is well positioned to contribute, particularly in areas such as digitalisation, urban development, environmental and climate protection, renewable energy, energy efficiency and industrial innovation. New AI technologies also offer promising opportunities for cooperation.

Close Cooperation Between Business Associations

The BDI works actively to improve the framework conditions for expanding bilateral economic relations. This includes regular dialogue with government representatives in Germany, the EU and Brazil, as well as the organisation of conferences, bilateral commissions and business formats.

In addition to its close cooperation with the German-Brazilian Chamber of Commerce and Industry and the embassies in both countries, the BDI maintains a particularly close partnership with its Brazilian counterpart, CNI. In April 2026, the 42nd German-Brazilian Business Meeting took place at HANNOVER MESSE under the motto “Germany–Brazil: Towards a Stronger, More Resilient Industry”. More than 700 representatives from business and politics took part. The 43rd German-Brazilian Economic Meeting will be held in Londrina in 2027.

Together, BDI and CNI continue to advocate for:

• the effective implementation of the EU-Mercosur interim trade agreement, which has been provisionally applied since May 1, 2026;
• progress on negotiations for a bilateral double taxation agreement;
• higher investment in infrastructure, renewable energy, climate protection, innovation and industrial transformation.