A survey by the Brazil’s CNI (Confederação Nacional das Indústrias””National Industrial Confederation) shows that industrial sector businesses are confident and ready to invest in Brazil next year.
The survey found that 94% of large businesses and 82% of small businesses said they were going to make investments in 2005.
For the sake of comparison, a year ago the numbers were 86% and 80%.
Most of the businesses said they would be investing in machinery and equipment, construction, consultancy and engineering.
The main goal of the investments would be to increase production, improve quality, reduce costs and make it possible to roll out new products.
The single most important obstacle to investments in 2005 cited by 60% of those interviewed would be a drop in demand.
Other possible problems mentioned were a shortfall of funds and uncertainty regarding taxes.
The president of the CNI, Armando Monteiro, declared that Minister of Finance, Antonio Palocci, assured him that the government is studying ways to alleviate the tax burden on financial transactions so as to reduce the cost of capital.
Agência Brasil
Translator: Allen Bennett