São Paulo – The increase in industry confidence seen in the Industrial Businessman Confidence Index (ICEI, in the Portuguese acronym), released by the National Confederation of Industry (CNI), should translate into new investment and in growth for the country, said the CNI chairman Robson Braga de Andrade and Brazil’s Finance minister Guido Mantega. The two gave a press conference this Friday (16th) at the CNI headquarters in São Paulo, while attending the second meeting of the National Industry Forum, a group composed of 65 delegates from sectorial associations and industry federations.
“All sectors have a more optimistic view of Brazil right now, both regarding growth and business profitability. We are aware that there are issues pending solving, including legal aspects, financing and concession tenders, but we are showing the minister that we believe investment should pick up again. The country is beginning to see a resumption of industrial growth,” said Robson.
Mantega criticized those who give negative assessments of the economy, and said that although the international rebound should help Brazil, there are also domestic factors involved. “In this second half, we have seen several positive factors that will drive the Brazilian economy. Inflation has done some damage in the first half; it has reduced the population purchasing power. The good news is that it is down already, and that, combined with the gradually increasing credit, means that we should see some stimulus for retail consumption.”
Another incentive that benefits the industry is the exchange rate depreciation. “The depreciation makes the national industry more competitive, and puts us in a better place, cost-wise,” said Andrade. Regarding stimuli to economic growth, Mantega also mentioned infrastructure concessions, whose auctions should begin in the current half. According to him, the government will ensure that concessions are profitable enough to attract the private sector.
*With Portal da Indústria. Translated by Gabriel Pomerancblum
