• Categories
  • Archives

Brazil’s Industry Criticizes Interest Rates

Brazil’s industrial indicators for February, released yesterday by the National Confederation of Industry (CNI), show that the real salary mass in February was 8.07% greater than it was in February, 2004.

“In the comparison between the first two months of 2005 and 2004, one observes an increase of 8.74%, the highest rate of growth for the start of the year since 1995,” the study points out.


When it comes to total hours worked, the CNI’s indicators show a 0.91% reduction in comparison with January, but, since February had only 28 days and included the period of Carnaval, the decline in total hours worked reflected a seasonal pattern.


“Discounting this effect, there was a growth of 0.82%.”


Utilization of installed capacity indicates that industry operated at 80.6% of capacity, the same level as in January, when it operated at 80.7% of capacity.


Since 1992, when the survey was initiated, “one has not witnessed the start of a year with such a high utilization of capacity,” the CNI observes.


When he announced the results of the survey, the coordinator of the CNI’s Economic Policy Unit, Flávio Castelo Branco, criticized the government’s monetary policy, which he considers “a brake on industrial activity.”


In his view, raising interest rates never stimulates growth. “The longer interest rates remain high, the greater the damage to industrial activity,” he affirmed.


Castelo Branco pointed out that the figures for February are favorable in relation to January, but he observed that this is partly the result of the drop that occurred in January.


“When we take a look at the last three months, we can say that the economy is more or less at a standstill. February’s indicators are close to or slightly lower than November’s,” he remarked.


ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Tired of Being Neglected by Brazil and Argentina, Uruguay and Paraguay Woo the US

Uruguay says it is tired of being treated as Argentina’s "little sister" and has ...

For the First Time Brazil Gets Federal Prisons

The 1984 Brazilian Penal Enforcement Law determined the creation of federal prisons in Brazil, ...

Au Revoir, Dictionary-Man

Bibliography: By Alessandra Dalevi With characteristic humility Antônio Houaiss used to call himself "a ...

Brazil-Uruguay Summit Discusses South America Integration

The President of Uruguay, Tabaré Vázquez, will pay an official visit to Brazil today. ...

Worker cuts sugar cane in Brazil

Brazil’s Ethanol Producers Call the US’s Free-Trade Bluff

Contrary to the usual outcome of Washington’s subsidies to U.S. farmers, recent grants for ...

Brazil’s Lula Finds Culprit for Global Crisis: White People with Blue Eyes

Brazilian President Luiz Inácio Lula da Silva and British Prime Minister Gordon Brown agreed ...

A Strange Silence

In a list of 150 countries classified by the he Gini index—an indicator used ...

Pressured by Military Lula Removes ‘Political Repression’ from Human Right’s Text

Brazilian president Luiz Inácio Lula da Silva signed a new decree changing the wording ...

Lubricant factory Unioil in Diadema, São Paulo, Brazil

Brazil’s Industry Output Grows 3.8% in First Quarter

The Brazilian Institute of Geography and Statistics (IBGE) disclosed this Friday, May 4, its ...

A Casualty of Brazil’s Defeat, Roberto Carlos, 33, Announces Retirement

Brazil defender Roberto Carlos has announced he is retiring from international football, after his ...