Brazil’s Industrial Capacity Nearing Its Limit

Brazilian market analysts and financial consultants interviewed last week by Brazil’s Central Bank expressed growing optimism over this year’s growth in the Gross Domestic Product (GDP).

The survey, released today, suggests that the GDP will end the year at 4.5%, compared with forecasts of 4.23% a month ago and 4.47% last week. The weekly rise is small, but it has gradually been maintained for 13 consecutive weeks.

The projection for 2005, on the other hand, suffered a slight decline, from 3.55% to 3.50%, back to its previous level.

The forecast for this year’s GDP reflects, in part, the resumption of industrial production, which the market expects to increase 6.61% this year, compared with last week’s estimate of 6.50%. Production, however, is pushing the limit of existing industrial capacity.

Still, it should be sufficient to meet the growing demand for Brazilian exports, which should generate a US$ 32 billion surplus in this year’s trade balance, according to the survey.

This performance has a positive impact on projections for the external current account surplus, which is expected to attain US$ 9.2 billion (as against last week’s estimate of US$ 8.97 billion), after interest payments on the debt are deducted.

The market raised its earlier expectations for foreign direct investments this year from US$ 11 billion to US$ 14.95 billion. The forecast for next year continues to be US$ 13 billion.

Agência Brasil
Translator: David Silberstein


  • 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Your email address will not be published.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.


You May Also Like

Brazil’s Lula: Just Another President of the Old Republic

The first generation of the Workers Party (PT) was a heroic one. In the ...

Brazil Tiles and Stones Find Place in the World

The 3rd Revestir, International Tiles and Stones Trade Fair, will gather 130 companies and ...

Brazil Ready to Cut Airfares Up to 80%

Brazil's National Civil Aviation Agency, which controls commercial flights policy in the country, announced ...

Bargain Hunters Make Brazilian Market Rebound

Latin American shares turned higher, led by Brazilian receipts, which received the brunt of ...

Amid Corruption Charges, Delays, Cost Overruns, Pelé and Romário Lambast World Cup Preparations

According to Brazilian soccer legend Édson Arantes do Nascimento, better known as Pelé, Brazil ...

Isabela Hasselblad, model from Rocinha

The Catwalk Dreams of Brazil’s Have-Nots

On a cool Saturday morning in Rio de Janeiro,  Zé Luiz Summer, a 34-year-old ...

Airton Dare Defends Brazilian Reputation at Indy

The news for fans of Brazil from the 90th running of the Indianapolis 500, ...

Brazilian Ministers Tell Their Vision of a Sustainable Amazon

Brazil’s Ministers of National Integration, Ciro Gomes, and Environment, Marina Silva, went to the ...

Brazil Ready to Take Seat Among World’s 10 Top Oil Producers

Petrobras, the Brazilian government controlled oil and gas multinational on Friday lifted the first ...

With Hundreds of Firemen Arrested Rio Can’t Reach an Agreement on Wages

In Brazil, a  demonstration by striking firemen in Rio de Janeiro for better salaries ...