Brazil’s Machinery Industry Fell 18% in 2009, But There Are Signs of Recovery

Machine Brazil’s capital goods industry posted revenues of 64 billion Brazilian reais (US$ 34.8 billion) last year. The figure represents a reduction of 18% compared with 2008, in nominal terms, according to information disclosed by the Brazilian Machinery Manufacturers Association (Abimaq).

In the last month of 2009, however, there was growth of 7.3% over November, and of 0.6% over December of the previous year, with revenues of 6.26 billion reais (US$ 3.4 billion).

According to a press release issued by the Abimaq, the president of the organization, Luiz Aubert Neto, stated that the resumption towards the end of the year was strongly influenced by the Program for Sustaining Investment of the Brazilian Development Bank (BNDES), which consists of a line of financing with annual interest rate of 4.5%.

To the executive, the program, coupled with the reduction of the Tax on Industrialized Products (IPI) that the government granted to various sectors, prevented revenues from dropping further during the year. In the face of the international financial crisis, the Brazilian government adopted a series of measures for encouraging economic activity.

The Abimaq has also informed that the number of jobs in the industry totaled 233,928 in 2009, a figure 3.7% lower than in 2008. In December, however, there was a slight growth, of 0.1%. Albeit low, the increment confirms the industry’s recovery trend, according to the organization.

With regard to exports, there was a drop of over 40% and revenues from shipments totaled approximately US$ 13 billion. Imports, in turn, totaled US$ 22 billion, a 14% drop compared with 2009. As a consequence, the industry recorded a trade deficit of US$ 9 billion, a figure 23% greater than in the previous year.

The reduction of foreign sales was the main contributing factor to the drop in industry revenues in 2009. In the domestic market, the slowdown was not as sharp, at a rate of 12%.

Anba

Tags:

Ads

You May Also Like

Google and Brazil Showdown: Both File Lawsuits.

In anticipation of the Brazilian Justice move today, August 22, to ask for the ...

World Cup: Rio Police Takes Control of Last Favela Around Maracanã in Hands of Drug Lords

The Mangueira favela (slum), with a population of around 20,000, became the latest out-of-control ...

Industrial Output Jumps 6% in Brazil. Only 2004 Was Better

Brazil's industrial output grew last year at its fastest pace since 2004, jumping 6% ...

Canadian Firm Keeps Digging for Gold in Northern Brazil

Canada-based Lund Gold Ltd. announced yesterday that the remainder of its 2,000 meter Phase ...

The Great Book Show

Despite the improvement in book sales, reading in Brazil continues to be an activity ...

Industry Jobs in Brazil Grow Again

Following two months of decline, industrial employment grew once again in April, in comparison ...

Brazil's onça (jaguar) threatened with extinction in Atlantic Rainforest

Brazil’s Dream Project: Bringing Moribund Atlantic Rainforest Back

The Atlantic rainforest known in Brazil as Mata Atlântica once spanned a million square ...

At 101, Brazil’s Niemeyer Wins Algiers’ Library Architectural Project

Oscar Niemeyer, the renowned Brazilian architect, designed the Aspa (South American-Arab Countries) Library, to ...

Jobs in Brazil’s Civil Construction Grow 400%

Civil construction was the sector of the Brazilian economy that recorded the highest increase ...

Disarmament Campaign Saves Over 3,000 Lives in Brazil

Over 3 thousand lives were saved in Brazil as a result of the reduction ...