<p>(Recasts with further data, context, economist quote)</p>
<p>SAO PAULO, March 6 (Reuters) - Industrial production in Brazil rose more than expected in January from December, government statistics agency IBGE said on Friday, despite high interest rates weighing on Latin America’s largest economy.</p>
<ul>
<li>Production rose 1.8% in January, IBGE said.</li>
<li>The median estimate in a Reuters poll projected a 0.7% increase.</li>
<li>The result marked the sharpest climb since June 2024, following a strong decline the previous month.</li>
<li>Output was up in all four main categories surveyed in January, according to IBGE.</li>
<li>Compared to a year earlier, production in January grew 0.2%, while economists had expected a 0.7% drop.        TIGHT FINANCIAL CONDITIONS</li>
<li>While January’s rebound partly offsets the weak end to the fourth quarter of 2025, the outlook remains cautious, warned Pantheon Macroeconomics’ chief Latin America economist Andres Abadia.</li>
<li>“Interest rate cuts this year, fiscal support ahead of elections, and potential gains from the EU-Mercosur agreement likely will provide some tailwinds, but investment weakness and political uncertainty keep risks tilted to the downside,” he said.</li>
<li>Brazil’s central bank has maintained interest rates near a two-decade high of 15% in a bid to tame persistent inflation, signaling it could start easing in March.</li>
</ul>

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EVLU

- Brazil's industrial production unexpectedly grew by 1.8% in January, as reported by government statistics agency IBGE, despite high interest rates impacting the economy.  
- This growth marks the largest increase since June 2024, contrasting with expectations of a 0.7% rise and a previous month's decline.  
- However, Andres Abadia, Chief Latin American Economist at Pantheon Macroeconomics, warns that investment weakness and political uncertainty pose downside risks, even as potential benefits from monetary easing and upcoming elections arise.

Reuters

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Brazil's industrial output beats expectations in January