Rescue operations are underway in southern Brazil's Rio Grande do Sul state following devastating floods that have claimed the lives of at least 90 people, with more casualties feared. Survivors, including families with young children, are enduring hunger and homelessness, seeking refuge on roadsides with scant supplies. Many have been stranded for days, awaiting evacuation by boat or helicopter as floodwaters continue to obstruct rescue efforts.

The deluge, triggered by heavy rains since last week, has submerged entire towns, destroyed infrastructure, and left over 155,000 people homeless. Porto Alegre, the state capital, is heavily affected, with downtown streets submerged under the swollen Guaiba river. President Luiz Inacio Lula da Silva has pledged federal assistance to address what is being termed as the state's worst-ever climate catastrophe.

Economists predict a modest impact on Brazil's economy, with slight reductions in GDP growth and a rise in inflation due to disrupted agricultural activities, particularly the soy harvest and meat production. Critical infrastructure damage has disrupted grain deliveries to the Rio Grande port, despite the port itself remaining operational. The situation remains dire as authorities and residents brace for further challenges as the floodwaters recede.