Durable and capital goods output in Brazil drop 40% from their highs
Overall, industry output is down by 18.7% from its peak. Durable and capital goods output in Brazil sees a nearly 40% drop, according to the stats agency IBGE.
Durable goods fell 42.1% from their best in March 2011. Capital goods sank 39.1% from their high in April 2013.
All four major industry categories lag behind their records. Intermediate goods fell 16.1% from their best in May 2011.
Semi-durable and non-durable goods are down 13.4% from June 2013.
Compared to February 2020, before COVID-19, three categories haven’t recovered. Durable goods dropped 22.3%, the most.
Capital goods fell 6.9%. Semi-durable and non-durable goods dipped 4.6%. Intermediate goods rose 1.8%, the only gain.
19 of 25 sectors tracked by the stats agency are down from February 2020. The worst hits are in furniture (33.9%), clothing (27.2%), and computers (25.7%).
Electrical gear sank 21.5%, and cars dropped 21.1%.
Brazil’s industry has seen ups and downs over the years. In the 20th century, Brazil became a key player in global markets.
The country heavily invested in factories and labor in the 1990s. But challenges like corruption and high taxes slowed growth.
The 2008 financial crisis also hit Brazil hard. In recent years, trade tensions and changing markets affected output.
Then came COVID-19, adding new challenges to the mix. Remote work and global lockdowns disrupted the supply chain.
Industries
Government aid has helped some sectors. But others still struggle to recover. Changes in consumer habits and global demand also play a role.
Despite setbacks, Brazil remains a big player in the global industry arena.
Brazil also aimed for self-sufficiency in oil and energy in the early 2000s. This attracted a lot of foreign investment.
Yet, oil price changes and political issues created instability. Renewable energy, like wind and solar, got more attention recently.
Tech growth is another focal point for Brazil. Companies like Embraer in aviation gained global recognition.
But, competition from abroad remains fierce. The focus is shifting toward sustainable and tech-driven industries.
Brazilian products, like coffee and soy, have always been in global demand. These markets are somewhat stable.
Yet, the rise in global trade tensions put a dent in exports. Adapting to new market trends is vital for Brazil’s industrial health.
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