Job Market Grows 5% in Brazil

    Brazil industry

    Brazil industry The real growth in revenues of the Brazilian industry in February increased 1.5% compared with January. It was the highest growth rate since July last year. Hours worked increased 1.8%.

    According to Brazil's National Confederation of Industries (CNI), the expansion of industrial activity is being accompanied by creation of new job positions. In the first two months this year, job vacancies grew 5%, in comparison with the same period of 2007.

    According to the Industrial Indicators disclosed on April 3 the use of the sectors' installed capacity went from 83.1% in January to 82.9% in February. According to the CNI technicians the result shows that production capacity grew, "as a consequence of the maturing of investment made over the course of 2007."

    Capital Goods

    The growth of imports at a higher rate than exports in Brazil is mostly due to purchases of machinery and equipment – which indicates that industries are benefiting from the value of the dollar, currently worth approximately 1.70 Brazilian reais, to expand their production capacity. This according to Brazil's Foreign Trade secretary at the Ministry of Development, Welber Barral.

    Average daily purchase of capital goods increased 69.7% last month compared with March last year, up from US$ 91.2 million to US$ 154.7 million. During the same period, the daily import average rose from US$ 435.6 million to US$ 580.1 million, growth of 33.2%.

    Despite being influenced by automobiles for which average daily imports grew 76.6% in a 12-month period, purchases of consumer goods grew at a lower rate than those of machinery. Average daily imports of consumer goods grew 32.4%, from US$ 61.3 million to US$ 81.2 million. The volume represents less than half the growth in purchases of capital goods.

    To Barral, the results show that Brazil is taking advantage of the moment, which is favorable to imports, in order to invest in expanding domestic production. "Ever since imports started to rise, purchases of capital goods have been increasing by more than 50% compared with the same month of the previous year," he claimed.

    Wheat Expansion

    Brazil plans to increase wheat production to 7.1 million tons up to 2012. The intention is for national production to answer to 60% of consumption. The proposal is part of the Five Year Plan for Support to Wheat Farming, which is being discussed by representatives of the wheat sector productive chain and of the government.

    The theme was discussed at the 18th ordinary meeting of the Sector Chamber of the Productive Chain of Winter Cultures, which took place on April 1st in Brazilian capital Brasí­lia.

    According to the Trade and Supply director at the Agricultural Policy Secretariat at the Ministry of Agriculture, Livestock and Supply, José Maria dos Anjos, the measures proposed to increase the volume of wheat production should dampen the demand for imports.

    Last year Brazil imported around 6.6 million tons, mainly from Argentina. Another theme discussed at the meeting was the establishment of a hub for production of wheat in the country, to contribute to expansion of the crop, mainly in the case of irrigated wheat.

    ABr

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    • Show Comments (5)

    • MPB

      My impression
      Is that the prices are going up in the supermarkets (especially middle and upper class ones) but don’t change much in the local street markets.

      So the normal people who still shop in the local markets can get there potatoes, rice, beans, meats and fruits for cheap. While the growing middle and upper classes who have developed this ridiculous fear of anything “poor” and only shop in big supermarkets close to their neighborhoods get taxed because they pay the inflated prices at these locations.

      If that money works it’s way down, then good, because this is then an indirect tax on people with money, but a lot of it probably doesn’t filter down.

    • João da Silva

      The Guest
      I wonder if you got to read the article written by Senator Chris Buarque under the title “Brazilians Are the Aedes Aegypti of Brazil” in https://www.brazzil.com .An interesting one.

      [quote]See you here in 2 1/2 months. I hope by then some positive changes would have taken place.[/quote]

      I hope by then http://www.brazil.com would have fixed the problem in their comments section!

      Have a great trip and all the best.

    • The Guest

      JoÀƒ£o
      “Well, I wish you a bon voyage and take care.Hope to see hear from you after 2 1/2 months.”

      Thank you. See you here in 2 1/2 months. I hope by then some positive changes would have taken place.

    • João da Silva

      The Guest
      Hi Captain (I hope to get to read it before boarding the vessel),

      [quote]I agree with you. I spend quite a bit of time in Brazilian supermarkets when I am in Brazil. Hopefully implementation of the above policies and capital goods expenditure will bring efficiency and lower prices to the Brazilian marketplace. Between 2000 and 2008, I saw the price of aveia go from R$0.95 to R$4.55 for a 500gram container. The last time I was in Brazil I bought a 6 week supply with me from Miami. 1 container with almost 3 times the quantity cost me R$3.26 at R$1.70/$1.00.[/quote]

      What the media do not say is the scandalous increase in the prices of food items (staple food), for the past two years. The prices of beef and dairy and poultry products have gone skyrocketing and it is useless to pretend that it is NOT going to contribute to the inflation rate. Look at the airfares, they have gone up too. I keep track of the price increase in various sectors of economy and I should know about it better!

      [quote]I have to tell you also, as a non Brazilian who love your country very much, I am very disappointed with the slow pace of development and export in the manufactured goods sector of the economy.[/quote]

      So am I! There are two schools of thoughts. The first one to which I belong is “Feed our own people first & strengthen your industries, especially the small and medium ones”. The policy of the “Others” is to “export anything at any price and damn the domestic consumers”. Unfortunately the second school has taken control and soon, we will be exporting just the food items subsidized by the domestic market and commodities (whose prices are going to go down further anyway, because of the looming world recession-it is futile to pretend that we are not going to be affected).

      Well, I wish you a bon voyage and take care.Hope to see hear from you after 2 1/2 months.

    • The Guest

      JoÀƒ£o
      “Brazilian Currency, the Real, Too Strong for Its Own Good”
      “The government needs to slow federal spending to rein in demand and help control inflation, instead of raising rates and fueling a currency rally…”
      “….the country must speed up the implementation of measures aimed at spurring exports of manufactured goods, and cutting reliance on shipments of commodities overseas.”

      “Capital Goods “
      “The growth of imports at a higher rate than exports in Brazil is mostly due to purchases of machinery and equipment – which indicates that industries are benefiting from the value of the dollar, currently worth approximately 1.70 Brazilian reais, to expand their production capacity.”

      JoÀƒ£o wrote
      “In other words, the Brazilians are subsidizing……the exports of beef,poultry and dairy products. If you talk to any sane Brasilian economist who does not work for the government, he will tell you that.”

      I agree with you. I spend quite a bit of time in Brazilian supermarkets when I am in Brazil. Hopefully implementation of the above policies and capital goods expenditure will bring efficiency and lower prices to the Brazilian marketplace. Between 2000 and 2008, I saw the price of aveia go from R$0.95 to R$4.55 for a 500gram container. The last time I was in Brazil I bought a 6 week supply with me from Miami. 1 container with almost 3 times the quantity cost me R$3.26 at R$1.70/$1.00.

      I have to tell you also, as a non Brazilian who love your country very much, I am very disappointed with the slow pace of development and export in the manufactured goods sector of the economy. As I told you before my interest in Brazil goes back many years and Brazilian industry and its development is something that I have been following for quite some time now.

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