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Brazil’s Industry Grows 5.5%, Rio Grande do Sul Shrinks

Brazil’s industrial production in May was up in 13 of the 14 regions analyzed by the Brazilian Institute of Geography and Statistics (IBGE), in comparison with May, 2004.

The exception was Rio Grande do Sul (-2.4%), where May represented the fifth straight month of negative results. Rio Grande do Sul was also the only state in which the cumulative result for the period January-May was negative.


The study, which was released yesterday, July 12, shows that the highest growth rate in May was registered in Amazonas (24.6%), followed by Paraná (13.5%), Ceará (7.2%), São Paulo (6.3%), and Minas Gerais (5.5%), all above the national average (5.5%).


Pará (4.4%), Santa Catarina (3.5%), Espí­rito Santo (2.2%), the Northeast (1.9%), Rio de Janeiro (1.5%), Goiás (1.4%), Pernambuco (0.9%), and Bahia (0.4%) grew less than the national average.


In terms of cumulative growth so far this year, Amazonas is once again the outstanding performer (18.1%).


According to the IBGE, the expansion there is being driven by the production of electronic materials and communication equipment, especially cell phones and television sets.


In the states of Santa Catarina (7.3%), Minas Gerais (7.2%), and Paraná (6.5%), motor vehicle production is largely responsible for the positive results.


“The increase observed in the production of durable goods has benefited from the sustained dynamism of exports and, in relation to the domestic market, the maintenance of the credit supply,” the Institute’s announcement declares.


ABr – www.radiobras.gov.br

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