• 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Your email address will not be published.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

Lula Boasts of Skipping New York and Rome to Visit 25 African Countries

Brazilian president Luiz Inácio Lula da Silva defended his “diversification” diplomacy and said that ...

Brazil’s Low-End Furniture Maker Eyes Foreign Market

Móveis WW , based in the small city of São Geraldo (southeastern Brazilian state ...

Brazil Cotton Maker Cataguases to Invest US$ 39 Million in Modernization

Brazilian Companhia Industrial Cataguases, a manufacturer of cotton fabrics, is going to invest 73.5 ...

Definitive Solution to Quotas in Brazil: Equal School for All

Not so long ago, Brazil was a country divided by the debate over ideas: ...

Acoustic Assurance

Some have dismissed his initiative as just "the paranoia of the Brazilian left-wingers", but ...

Brazil Wants a Joint Effort to Fight Desertification

Desertification could affect 1,482 municipalities in Brazil, attaining an area of over a million ...

In Brazil, a Silk Factory with a Social Conscience

Silk, one of the noblest fabrics of haute couture, can also become artistic products ...

Time for Brazil to Be More Than Just the World’s Farm

According to Celso Grisi, director at the Foundation Institute for Administration (FIA), Brazil has ...

A sugarcane plantation in Brazil

Ethanol: US and EU Get on a Road Brazil Has Been for 20 Years

Brazilians may double or even triple their ethanol production over the next 15 years. ...

Brazil to Chavez: Apologize or No Deal!

Venezuela may need to apologize to Brazil's Congress if it wants to join Mercosur ...