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:

Ads

You May Also Like

An US$ 80 Million Steel Deal Between Brazil’s CVRD and Qatar

Samarco, a Brazilian mining company and industry belonging to Companhia Vale do Rio Doce ...

Brazil and South Korea Promote UN Events on Non-Proliferation

Brazil and South Korea kicked off on Tuesday, November 25, two United Nations disarmament ...

OAS in Favor of Maintaining Brazil as Head of Haiti’s UN Forces

In a note released Wednesday, January 11, the Organization of American States (OAS) expressed ...

A Proposal to End Brazilian Poverty: Sterilizing Irresponsible Parents

Let me tell you a little story about a guy in São Paulo, Brazil, ...

Lower Ethanol Prices Help Brazilian Inflation Go Down

The Broad Consumer Price Index (IPCA) rose 0.21% in April, a slackening down from ...

Cuba Calls Story That It Sent Money to Lula’s Party in Brazil Slander

The Cuban Embassy in Brazil categorized the story that appears on the cover of ...

The Big Heart of the World’s Most Famous Plastic Surgeon Has Stopped

Celebrated Brazilian plastic surgeon Ivo Pitanguy has died at the age of 90, a ...

On-line samba

The Internet is full of stories of romances, of lives saved, of businesses started. ...

US Tractor Maker John Deere Invests US$ 80 Million in Brazil

US-based agriculture equipment maker John Deere announced its intention to invest approximately US$ 80 ...

American President, George Bush, before leaving to Brazil

Before Leaving to Brazil Bush Pushes for His Own Bolivarian Revolution

In a Washington speech to a group of Hispanic business leaders, just a few ...