The high interest rate is an obstacle to the continued advance of industrial production in Brazil. In June, the sector grew 0.3% compared to April. The scenario, however, tends to get worse in the coming months, projects the Federation of Industries of the State of Rio de Janeiro (Firjan).
“As the start of the interest rate cut cycle is postponed, the effects on economic activity are greater, harming strategic sectors of domestic industry. The federation reinforces that the sector’s sustainable growth depends on a more favorable business environment for investment”, highlights the entity.
In the evaluation, Firjan also considered the low variations of the sector. The first five months of this year accumulated a 0.4% drop compared to the same period in 2022. To reverse the situation, the group calls for urgency in voting on the new fiscal framework and tax reform. “The adoption of these measures will create favorable conditions for the reduction of country risk and for a consistent drop in interest rates”, he justifies.
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