Industry in Brazil Wants to Grow Installed Capacity by 15%

    Industry ABC

    Industry ABCBrazil’s industry plans to expand installed capacity by 14.6% on average this year. The rate is the highest in eight years, as shown by a survey disclosed by the Getúlio Vargas Foundation.

    The Industry Investment Survey shows that for the 2010-2012 period, sector forecasts are for expansion of 23.8%, higher than last year’s 21.2% estimate for the 2008-2010 period. The percentage, however, is lower than projections for 2008, when they had reached 25.1%.

    The consumer goods sector, which includes furniture and vehicles, had its highest expansion forecast. The capital goods (machinery and equipment) and intermediary goods (garments, shoes and food) sectors came in tow, with average expansion forecasts of 15.4% and 13.8%, respectively.

    For the 2010-2012 period, the greatest rate of investment in productive capacity was also verified in the consumer goods sector, with 27.1%. In capital goods, the rate rose from 17.1% in 2009 to 25.9% in 2010, whereas in intermediary goods, the forecast for this year is 21.7%, against 19.9% last year.

    Among the companies researched, 80% consider the level of domestic demand a positive influence for investment in 2010, whereas 40% of industries said that foreign demand was a positive sector for the investment forecast.

    Regarding financing conditions for this year, 42% of the companies interviewed consider forecasts positive, the best result since the research started being executed. Interest rates, in turn, were considered a positive influence by 31% of the market and negative by 29%. To the FGV, despite the divided opinions, this is also the best result for the series over the last four years.

    For execution of the January/February 2010 Industry Investment Survey, Getúlio Vargas Foundation heard 723 companies between January 4th and February 26th of this year. Together, these companies totaled revenues of 460.3 billion Brazilian reais (US$ 255.6 billion) and employ 880,000 people. The objective of the research is to supply information regarding the route of productive investment in the industrial sector.

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    Ads

    You May Also Like

    US's corn subsidy

    US$ Vows to Cut Farm Subsidies to US$ 15 Billion to Appease Brazil and Co.

    The United States says it is ready to cut its trade-distorting farm subsidies to ...

    Brazilian train

    A US$ 37 Billion Secret Project to Make Brazil and South America US and EU Friendly

    The project for Integration of South American Regional Infrastructure (IIRSA, by its initials in ...

    Brazilian cattle

    Brazil Outdoes Argentina in Soy and Cattle

    The 70 million tons of the 2008/09 Argentine harvest would represent 2.9% of the ...

    Brazil’s Romário in ‘Six Chickens and a Raging Bull’

    Fluminense’s president, David Fischel, criticized football star Romário for attacking a fan after a ...

    Allende overthrown in Chile

    Brazil, After All, Had Big Role in Overthrowing Chile’s Allende, in 1973

    It was 1971. Then Brazil's dictator, general Emilio Garrastazu Médici and US president Richard ...

    Street vendor at the beach

    Brazil Grows 6.8% and Won’t Go in Recession, Says Minister

    For the surprise of the world Brazil expanded at an annual 6.8% in the ...

    A Brazilian court in sesssion

    Being a Judge in Brazil Is Often Also Being a Legislator

    Judges in Brazil acquired from the 1988 Constitution an impressive degree of administrative, financial, ...

    Brazil Is Having a Hard Time Preventing International Biopiracy

    The problem of biopiracy and improper registration of traditional knowledge pertaining to communities in ...

    Itaipu dam, Brazil

    Brazilian Congress Taking Its Time to Pay Paraguay More for Itaipu

    It seems there is a positive attitude in the Brazilian congress towards the consideration ...

    Amazon Rubber Farmers from Brazil Have Global Plans

    A group of rubber farmers from the cities of Machadinho do Oeste and Vale ...