Industry Leader Warns that Brazil Needs to Invest More

Brazil’s industrial production will have a lot of space in which to grow this year. This was the opinion expressed by Carlos Castelo Branco, manager of Economic Policy at the National Confederation of Industry (CNI).

In his view, the country’s current economic situation favors fresh investments, which will contribute to a gradual recovery in industrial growth in 2006.

Thursday, March 16, Castelo Branco presented data from the CNI’s Economic Indicators study for January. The study, which is conducted each month and involves 3 thousand companies, shows that Brazilian industry used a low level (79.1%) of its installed capacity in the first month of this year.

This is the lowest January index since 2002. The downward trend is also apparent after seasonal influences are factored out, according to the CNI.

In this case the percentage of installed capacity used in January, 2006, was 80.4%, the lowest level since November, 2003. Castelo Branco explained that both the sluggishness of the economy and the lack of investments contributed to the reduction in capacity use.

According to the economist, the figures referring to capacity use, together with the drop in the number of hours worked, reflect an adjustment in inventory levels. In his view, Brazil’s current situation is favorable.

He warns, however, that the country needs to take certain precautions. "The Brazilian economy has still not overcome its structural difficulties. Investment must be encouraged to ensure that growth rates in the future will be higher than the ones we have now."

Agência Brasil

Tags:

  • Show Comments (2)

  • Guest

    I love this
    this is weard

  • Guest

    not only…invest more….
    ….but invest BETTER !

    Dont you have what you call yourself the
    “CUSTO BRAZIL” ??????

    As long as you have not reduched sharply or eliminated this “CUSTO BRAZIL” whatever amount of investment you will do will not be efficient !

    Investing more is not sufficient !

Your email address will not be published.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

Very Un-Brazilian

I have heard Brazilians comment that people in other countries, US and Europe specifically, ...

Left Is Right

President-elect Lula is honest, passionate, smart, and charming. Forget his lack of formal education. ...

Brazil Celebrates Pessoa. Woe the Poet!

In the last decades, literature studies have been the major propeller— not in literature—for ...

Brazil Still Ambivalent on Adopting Genetically Modified Crops

Brazilian legislation permits the cultivation of one type of genetically modified (GM) soy and ...

Brazil GDP Grows 4.3% in a Year

Brazil’s Gross Domestic Product (GDP) – the sum of all goods and services generated ...

Lula Goes to Argentina on a Fence-Mending Mission

Luiz Inácio Lula da Silva, the president of Brazil is expected in Argentina on ...

French No More. Boeing F-18 Now Seems to Be Favorite for Brazilian Air Force Update

Brazil will not review multibillion-dollar bids for a fighter jet deal until the start ...

Transoceanic Highway Brings Asia Much Closer to Brazil

Brazilian President Luiz Inácio Lula da Silva, speaking in Puerto Maldonado, Peru, yesterday, for ...

Global Food Price Hikes Give 18% Boost to Sí£o Paulo, Brazil, Farm Revenues

The agricultural production value in São Paulo, Brazil, should end the year at 37.7 ...

Abbott Blinks First and Brazil Gets Its AIDS-Drug Discount

Some 23,000 people in Brazil use the AIDS drug, Kaletra, made by the Abbott ...