8.3%! Brazil Hadn’t Grown That Much in 18 Years.

Thanks to some revisions by the IBGE (Instituto Brasileiro de Geografia and EstatÀ­stica – Brazilian Institute of Geography and Statistics) 2004 has become the best year the Brazilian economy has seen in 18 years, growing at a fast clip of 8.3%.  

The 8.3% expansion is superior even to the progress in 1994, the year the Plano Real was established. That year the economy grew by 7.6%. The growth was led by the sectors of durable goods, including appliances and automobiles and of capital goods, including machines and equipment.    
 
In contrast with the sector of non-durable consumer goods like food, which had an increase of  only 4%, the production of capital goods advanced 19.7%, and the one of durable goods grew by a robust 21.8%. 
 
The whole Brazilian industry experienced growth in 2004. Twenty six of the 27 segments researched  showed to be in expansion.  These results were possible thanks to  growing exports, a bigger offer of the credit and investment in production.


The autoindusty sector, for example, experienced a 27.6% growth when compared to the previous year.  Compared to November  December production had a positive variation of 0.6%.


This recuperation in the last month of the year was led by the recovery of the segments that depend on income like semidurables (clothes, shoes) and non durables, which had a 3.4% growth. Other sectors had a more modest performance.      
 
The 18-year record also happened due to the several revisions made by the IBGE.  This way, November, which previously presented a 0.4% fall became a 0.3% increase. October also went up from 0% to 0.2% and September changed from 0.2% to 0%. Almost every month had is results reviewed upwards.   
 
Silvio Sales, IBGE’s industry coordination chief, explained that the revisions are a result of a methodology that requires seasonal adjustment. According to him it’s customary that the companies send new information after the IBGE has closed its monthly research.   
 
“The market knows about the procedures adopted by us, and a lot of forecasts already incorporate possible revisions”, he said. For him, methodolgy is the only reason behind so many revisions.


BrM

Tags:

Ads

You May Also Like

Brazil’s Higher Inflation Leaves Little Room for Interest Rates Cuts

Consumer prices in Brazil rose faster than expected in the month to mid-July on ...

In Face of U.S. Prepotency Brazil Can Only Show Cowardice

It’s not just at home that the Brazilian government acts shamefully. This  happens in ...

Brazil Sells 3 Airports for US$ 14.3 Billion, 4 Times Over the Asked Price

For the Brazilian government the privatization of three airports turned into a more than ...

Brazil Rebuffs Amnesty and Says It’s on the Right Path

The national secretary of Public Safety in the Ministry of Justice, Luiz Fernando Corrêa, ...

94% of Brazilians Worry a Gun Might Spoil Their Day

Close to 100% of Brazilians are worried about becoming a victim of a gun. ...

Brazilian Industry Blames High Interests for Slow Growth

Moderate industrial sector growth in the second half is what Brazil can expect, says ...

Brazil Is World’s Number 3 in Franchises with Revenues of US$ 135 Bi in 2010

Last year alone, 14,365 new franchises were opened in Brazil, generating 144,000 new work ...

Brazil Anticipating US$ 35 Billion in Foreign Direct Investment This Year

According to the projection of the Central Bank of Brazil, the country should receive ...

With Lula in Power in Brazil, Defrauding Is a Civic Duty

“Whatever comes your way, will do you good” – says a sinister Spanish proverb. How ...

Americans and Brazilian Immigrants Flock South in Search of Brazilian Dream

Brazilian immigrants are returning home to a bustling economy that offers better financial opportunities ...