After One Month Decline Brazil Economy Jumps Back on Uphill Track

Industrial production had a pronounced increase in 10 of the 14 regions of Brazilian surveyed in August by the Brazilian Institute for Geography and Statistics (IBGE). The 1.3% growth came after the 0.4% decline for the previous month of July.

For Silvio Sales, the study's main researcher, the widespread positive result in several industry segments shows that the positive trend should continue and indicates that 2007 will be a favorable year for the industrial sector.

"The numbers of August show a far-flung growth. The industry recovered from the July decline and started growing once again in a substantial manner. This and other indicators suggest that this year will present a substantial performance," Sales said.

Highlights were the states of Amazonas, in northern Brazil (7.5%) and Espí­rito Santo, in southeast Brazil (6.4%). The state of São Paulo (Southeast) also recorded a positive performance (0.4%) but remained below the national average growth rate, of 1.3%, despite having the country's largest industrial park.

The Monthly Industrial Survey – Regional Physical Production (PIM-PF Regional), disclosed today, October 9, by the IBGE, shows that the Brazilian industrial production increased in August, compared with July, also in the states of Pernambuco (1.5%), Goiás (1.3%), Santa Catarina (1.1%), Minas Gerais (1.1%), Ceará (0.7%), Pará (0.4%) and Paraná (0.2%).

Industrial activity remained stable in July/August in the states of Rio de Janeiro (no variation) and Rio Grande do Sul (-0.2%), and decreased in the northeastern Brazilian region as a whole (-0.2%), and in the state of Bahia (-2.6%).

In a comparison between August 2007 and August 2006, a 6.6% growth rate was recorded in 12 of the 14 regions surveyed. The states of Espí­rito Santo, Amazonas, Minas Gerais, Santa Catarina, and Paraná recorded increases greater than the national average.

In the accumulated result for the period ranging from January to August, all of the regions surveyed have recorded increases in production, with the exception of the state of Ceará (-0.4%).