Brazil’s industrial output rises higher than expected

Brazil’s economy is developing well, and industrial production increased in November, exceeding market expectations. Statistics agency IBGE reported on Friday that the country’s industrial output rose 0.5% from October, a figure that far exceeded the 0.2% rise forecast by analysts in a Reuters poll. The increase was the highest monthly increase in the past six months.

Although activity has been relatively stagnant for a year, November’s gains marked the fourth consecutive month of growth for Brazil’s industrial sector. Since June, due to high borrowing costs, the industry has shown slight fluctuations and small monthly increases and decreases.

A significant contributor to November’s growth was the production of intermediate goods, which rose 1.6% month-on-month. This growth helped balance declines in capital and durable goods output.

Year-on-year data also showed improvement, with industrial production rising 1.3% year-on-year in November 2021, again beating the 0.7% increase expected in the survey. Reuters investigation.

IBGE Research Director Andre Macedo pointed out that despite growth in the past four months, industrial output is still 0.9% below pre-epidemic levels and is significantly down, 17% below the peak reached in May. year 2011.

Recent gains in industrial production are in line with initiatives by the government of President Luiz Inacio Lula da Silva, which last month launched new measures to boost Brazil’s industrial sector. The government’s “reindustrialization” strategy includes tax incentives for companies investing in new machinery and transport.

Lula’s government remains committed to industrial growth and has expressed its intention to promote industrialization by supporting environmentally sustainable projects. The initiatives include the development of flex-fuel and electric vehicles, renewable energy and biofuels, reflecting the government’s push for a green economy.

Reuters contributed to this article.

This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.