Brazilian Industry Climbs To 40Th Place In Global Production Ranking
Date
10/22/2024 2:00:08 AM
(MENAFN- The Rio Times) Brazil's manufacturing industry has made significant strides in the global production landscape. The country jumped 30 positions in a year, reaching the 40th spot among 116 nations. This remarkable progress occurred between the second quarters of 2023 and 2024.
The Brazilian manufacturing sector grew by 2.9% in the second quarter of 2024 compared to the same period in 2023. This growth propelled Brazil from its previous 70th position to its current ranking. The data comes from a study by the Institute for Industrial Development Studies (IEDI) .
Rafael Cagnin, IEDI's chief economist, attributes this dynamism to several factors. The recent cycle of interest rate cuts played a crucial role. It made credit more accessible for durable goods consumption. The rate reduction began in August 2023, dropping from 13.75% to 13.25%.
Other contributing factors include improved employment conditions and increased real income. The easing of inflation and important public programs also helped. These include minimum wage adjustments and the expansion of the Bolsa Família program. Additionally, the early payment of court-ordered debts injected demand into the economy.
Brazil's performance outshined other notable Latin American countries. Chile, Mexico, Colombia, and Argentina all ranked lower. Brazil's growth also surpasse several developed nations, including the United States, United Kingdom, France, Japan, and Italy.
Brazilian Industry Climbs to 40th Place in Global Production Ranking
The manufacturing industry is expected to contribute positively to Brazil's GDP growth in 2024. Claudio Considera from FGV's Brazilian Institute of Economics supports this view. He cites increased demand for industrial goods and durable goods consumption as key factors.
However, the recent interest rate hike in September 2024 raises some concerns. It could potentially slow down the manufacturing sector's growth. Additionally, trade barriers imposed by the US and Europe on China may increase competition for Brazilian products.
Despite these challenges, experts remain optimistic about the industry's outlook for 2024. The manufacturing sector's growth tends to create positive ripple effects across various sectors.
This progress marks a significant achievement for Brazil's economy and its position in the global industrial landscape.
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