• Categories
  • Archives

Brazil Industry Blames Economic Downturn on High Interests

Employment in the São Paulo industrial sector rose only 0.38% in May, after rising 0.47% in April, according to a survey by the state industrial confederation (Ciesp).

According to the Ciesp Economics Department director, Boris Tabacof, “The numbers confirm a downward tendency that has been apparent for a few months now and show that we are going through an economic slowdown.”


Employment rose in the Food and Alcohol sectors (the latter got a boost from the sugar harvest). It fell in the Textile and Footwear sectors, which are strong exporters and subject to problems with the exchange rate. In the last six months the Brazilian real has risen sharply against the dollar.


The final employment balance between firings and hirings for the month of May presented a total of 7,428 new jobs. That is only half of the number of jobs created in May 2004 (14,569).


For the year, the cumulative rise in employment is 40,116, compared to 45,379 during the same period in 2004.


Boris Tabacof says there is a direct link between interest rates (which the government began to raise in September 2004) and the downturn in employment in São Paulo.


He declared that the interest rate is an additional factor in production costs, harming the state’s industrial sector which accounts for 33% of Brazil’s GDP.


ABr – www.radiobras.gov.br

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Your email address will not be published.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

Obama’s Psychological Blackmail Has Been Done Before in Brazil, with Success

Besides listening to the national anthem with his hands over his genitals instead of ...

São Paulo city

37% of All Brazilians Live in Six Cities

27.2% of the 5,507 municipalities in Brazil lost population between 1991 and 2000. On ...

Brazil Opens Microbe Bank to the World

Hundreds of bacteria, fungi and yeast species, mostly collected from the wilds of Brazil, ...

Brazilian Market Finds Way Out of Red

Latin American markets endured a mixed session, as Brazil and Mexico moved in opposite ...

65% of Brazilians Believe Peace Is Back Thanks to Deal with Organized Crime

After four days of organized gang attacks and a ferocious police backlash with a ...

World Survey Shows a Brazil with Low Quality of Living

BrasÀ­lia, the capital of Brazil, is the first Brazilian city to appear, in 104th ...

Brazil Pitches In at Community of Democracies

The Brazilian Minister of Foreign Relations, Celso Amorim, went to the Chilean capital, Santiago, ...

U.S. Sanitation Team Gives OK to Brazil Mango

A group of technicians from the Department of Agriculture of the United States has ...

Old Tales and Wild

Juvenal was a stutterer. When narrating the games he would finish describing the moves ...