Brazilian Industry Blames High Interests for Slow Growth

    Moderate industrial sector growth in the second half is what Brazil can expect, says Flavio Castelo Branco, of the National Industrial Confederation (CNI, Confederação Nacional da Indústria), as he announced the latest CNI survey which showed the sector operating at almost 83% of installed capacity.

    Castelo Branco said that first half growth was inhibited by high interest rates. But he said that if the rates fall beginning in August it would be a “positive sign for future growth.”


    However, Castelo Branco pointed out that it is not just interest rates that influence growth. He cited the fact that investments were not getting incentives, it was difficult to obtain long-term loans and there were serious problems with infrastructure.


    “That all puts a brake on investments and makes them more expensive,” he said.


    Sales Drop


    Sales of Brazilian vehicles and machinery fell on both domestic and foreign markets in July, reports the auto industry association (Anfavea).


    Domestic vehicle sales were down 6.6%, compared to June. Farm machinery was down 8.5%. There was also a drop in vehicle exports, down 7.8%, and farm machinery, down 19.1%.


    However, cumulative sales for the first half remain positive in all sectors except domestic sales of farm machinery.


    Agência Brasil

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