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


    • Show Comments (0)

    Your email address will not be published.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

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.


    You May Also Like

    Brazilian soy

    Brazil Agribusiness Exports Explode: 27% Growth, US$ 74 Billion in Revenues

    Brazilian agribusiness exports should end the year with revenues of US$ 74.4 billion with ...

    Brazil Coaxing Russia to End Presto Its Embargo on Brazilian Meat

    Brazil is in Moscow to discuss Russia’s resumption of pork and beef imports from ...

    Ecuador’s Gutií©rrez Gives Up Political Asylum in Brazil

    The ex-President of Ecuador, Lúcio Gutiérrez, gave up the political asylum granted by Brazil ...

    Cesare Battisti

    The Battisti Affair Hasn’t Sated Italy’s Appetite for Doing Business with Brazil

    Cesare Battisti, a member of Italy’s Armed Proletarians for Communism (PAC), lives comfortably in ...

    Iraq's Kurdistan DBX

    Iraq Has Plenty of Money and Wishes to Do Business with Brazil

    The Kurdistan DBX Trade Show began Tuesday, November 11, in Suleimaniya, in Northern Iraq, ...

    Brazil’s BNDES Lends US$ 10 Billion in 7 Months, Less than Half of 2005 Budget

    The Brazilian Development Bank (BNDES) loaned 24.5 billion reais (equivalent to US$ 10.3 billion ...

    Cattle from Brazil

    Brazil Hopeful Global Crisis Will Strengthen the Country’s Beef Industry

    Saudi Arabia, Algeria, Egypt and Libya once again stand out among the ten main ...

    Brazil, Venezuela and Colombia Hold Summit in the Amazon

    Brazilian President Luiz Inácio Lula da Silva will meet with presidents Hugo Chávez (Venezuela), ...

    Brazil: New Focus Helps Amazonas Reduce Deforestation by 39%

    While the total deforested area in the Amazon increased 6% between 2003-2004, according to ...

    Brazilian shoes

    US Buys 26% of Brazil’s Shoes. Exports Are Also 26% Down, However

    In the first six months of 2009, Brazil exported 65.8 million pairs of shoes. ...