2023-09-05 18:47:00
Industrial production in Brazil fell more than expected in Julywhile high borrowing costs they cause uneven growth in Latin America’s largest economy.
The production decreased by 0.6% compared to the previous monthovercoming the median estimate of a 0.3% decline according to analysts surveyed by Bloomberg. On an annual basis, industrial production fell by 1.1%, the national statistics agency reported on Tuesday.
Brazil displaced the United States as the world’s largest corn exporter
The gross domestic product of Brazil it beat expectations in the second quarter, driven by services and a strong labor market. But double-digit borrowing costs have hit the industry especially hard, as it puts financing out of reach for many.
President Luiz Inácio Lula da Silva has tried to boost the manufacturing sector through tax incentives and other relief measures. The left-wing leader has seen his popularity soar as the perception of the economy improves.
Translated by Paulina Munita.
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