Brazil’s Industries Federation Insists: Interests Must Go Down.

The Federation of Industries of the State of São Paulo, Brazil, (Fiesp) rejoiced in the 1% increase in the GDP in the third quarter of this year, particularly in the fact that this growth was led by the industrial sector, which grew 2.8% during the July-September period on a quarter-to-quarter basis.

Industry grew 7% overall during the first nine months of this year, and the forecast is for a year-end figure of 6.5%.


Nevertheless, the president of the organization, Paulo Skaf, recalls that these numbers reflect the period prior to the post-September rise in the benchmark interest rate (Selic) and that for the country to continue to grow, it is important for interest rates to come down.


“With lower interest rates, companies will invest more, and, as a result, family buying power will grow,” he states.


Skaf also believes that with lower interest rates, the dollar will reach a level that will stimulate exports, contributing to higher domestic production, employment, and income.


“The year 2004 is already assured,” the Fiesp president observed, underscoring the 20.1% increase in industrial investments and 5.7% increase in consumption by families.


But a year of growth is not enough, Skaf claims. “We need decades of growth. And for this to occur, significant changes are needed in economic policy, measures that establish greater control over public spending, that can lower interest rates,” he repeats.


Agência Brasil
Translator: David Silberstein

Tags:

You May Also Like

Where the party never stops

Salvador’s Carnaval became the most popular festival in Brazil, surpassing the one in Rio. ...

New Zealand Leader Wants Brazil’s Petrobras Out After Deadly Explosion

Manu Caddie, a Gisborne District Councilor in New Zealand, has renewed his call for ...

Brazil Ready to Be World’s Top Supplier of Alcohol

With the increase in the world demand for alternative fuels, Brazil hopes to add ...

Brazil Northeast’s Worst Drought in 50 Years Harms Agriculture and Threatens Blackout

The Brazilian Northeast is suffering its worst drought in decades, threatening hydro-power supplies in ...

Brazil to Join EU and US in Effort to Research Nuclear Fusion Energy

The European Atomic Energy Community (Euratom) and the Brazilian government, this past June 5th, ...

Health Council Advises Brazil to Break Patent on Three AIDS Drugs

Brazil should break the patents on three HIV/AIDS drugs, whose cost could jeopardize national ...

Enough of Good News, Brazil! Time to Build a Fairer Society Now

A number of events has projected Brazil into the headlines of international news, besides ...

Brazil Protests: Bus and Banks Vandalized and Burned in Rio and São Paulo

Protesters demonstrating in Brazil in support of teachers receiving better pay in the Brazilian ...

In Brazil, It’s Three Beers or Your Life

Bribe fishing, is nothing new in Brazil, having been incorporated into Brazilian culture decades ...