The industry’s poor performance and hope in consumption

BRAZIL ECONOMICS - Report 16 Sep 2019 by Affonso Pastore, Cristina Pinotti and Marcelo Gazzano

The outlook for GDP growth is disheartening. Despite the surprisingly good performance of industrial GDP in the second quarter, when it grew by 0.7% in relation to the first quarter, there are no signs that this was trend change. The monthly survey of industrial production conducted by the IBGE shows that from May to July, gross output declined by 1.2%, leaving a negative carry-over to the third quarter, and there is strong evidence that the manufacturing segment is more sensitive to external shocks than overall GDP, due to the negative consequences of decelerating world growth (also most accentuated in industry). In summary, the Brazilian economy cannot count on recovery of industry to favor faster growth, which mainly depends on the reaction of household consumption.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.