After Three Months of Decline Search for Credit Rises 5.2% in Brazil

Brazzil Magazine covers

Honda motorcycle factory in Manaus, Brazil Brazilian companies search for credit has grown 5.2% in the month of April over March. This is shown in the Serasa Experian Index. The month was of recovery as the accumulated result for the first four months of the year, there was a reduction of 8.4% in demand for credit when compared to the same period in 2008. When compared to April last year, the reduction was even greater, 13%.

The Brazilian region that had the greatest growth in demand for credit was the North. Companies in northern Brazil expanded their search for funds by 18.5% when compared to March this year. In the Southeast there was growth of 7.1% over the previous month. There was also growth in the South, 3%, Midwest, 0.9% and Northeast, 0.1%.

According to a research, the reduction in Industrialized Product Tax (IPI) for motorcycles and household appliances explains a good part of the elevation of demand.

The production of this kind of product is located mainly in the two regions – the North and Southeast – where there was greatest growth. Micro and small companies were the ones that expanded their search for financing the most, up 5.6% in April when compared to March.

Industry was the main highlight in elevation of demand for company credit in April, with growth of 7.8% over the previous months. Trade grew 5.6% and the service sector grew 3.9% in terms of demand for credit.

In the accumulated result for the first four months of the year, the reduction in demand for credit was 8.6% in industry, 8.5% in trade and 8.4% in services.

Anba

Tags:

You May Also Like

Brazzil Magazine covers

Brazil Still Immune to US Mortgage Crisis, But Not the Rest of LatAm

According to the joint indicator from Brazil's Getúlio Vargas Foundation (FGV) and the University ...

Brazzil Magazine covers

Rio’s Christ Getting a US$ 4-Million, 6-month Facelift

Rio’s Christ the Redeemer’s statue, considered one of the seven new wonders of the ...

Brazzil Magazine covers

International Passengers in Brazil to Benefit from New Gol-Varig Accord

Brazilian Airline Gol and its own subsidiary Varig entered into an agreement effective September ...

What a Shame! We Brazilians Are a Bunch of Narcissistic Hypocritical Scoundrels

On the last day of 2009, amid the New Year’s congratulations, a serious fact ...

Brazzil Magazine covers

Brazil Needs a General Strike to Demand Good Education for All

May Day is no longer commemorated as it once was. The crisis in socialist ...

Brazzil Magazine covers

Lula’s Advisor Sees Negotiated Solution for US-Brazil Trade Dispute

In an interview to foreign correspondents, in São Paulo, the special advisor to the ...