Omar Nasser, from Fiep*
Curitiba – Industrial sales from the state of Paraná in the first two months of 2007 rose 7.67% when compared to the same period in 2006. An important cause for this expansion was the export performance, which rose 22.95%, powered by the positive performance of eleven of the eighteen areas researched. The figures are included in the Conjectural Indices research, promoted by the Economic Department of the Federation of Industries of the State of Paraná (Fiep).
The results of sales accompanied the performance of production. According to the Brazilian Institute for Geography and Statistics (IBGE), industrial production of the southern Brazilian state of Paraná in February rose 2.6% when compared to January. With regard to February 2006, the increase was 8.3% and, in the first two months, the accumulated increase was 5.7%. The indices were well above the Brazilian average, which was 0.3%, 3.0% and 3.8%, respectively.
A growing share of the production of the state of Paraná is being turned to the Arab market. Figures supplied by the Ministry of Development, Industry and Foreign Trade show that, in the first two months alone, the state exported US$ 66.3 million to the countries in North Africa and the Middle East, which means expansion of 50% over the beginning of the decade.
In the first two months of 2001, the state of Paraná exported US$ 44.2 billion to the region. The main industrialized products made in the state of Paraná and consumed by the Arabs are poultry, cattle beef, soy oil and sugar.
Optimism
The prognosis for the state industry in 2007 is positive, according to Fiep analysts. The expectations are that this year sales should reach or even exceed the level registered in 2002, the best in the historic series researched by the organization.
"The countryside continues presenting a positive impact on industry dedicated to the supply of agricultural equipment (implements, manures, fertilizers, etc.)," according to Maurílio Schmitt, coordinator of the Economic Department at the Fiep. Another segment favoured by the positive agricultural performance is the food industry, which uses as inputs the goods produced in the countryside.
According to the economist, some international commodity prices are favouring the countryside of the state of Paraná and, indirectly, the industrial behaviour. He mentions the increase in soy prices (12.91%) and maize (4.93%). The prices of orange juice were slightly down, 2.34%. They are still, however, above the historic average. In 2006, the increase was 60.74%.
One of the main complaints of the Brazilian business sector, the appreciation of the Brazilian currency, the real, against the dollar, seems to have lost relevance for some industrial sectors in the state of Paraná. Schmitt recalls that a great effort was made to add value and to find new markets, which neutralizes, to some extent, the negative effects of the appreciation of the dollar.
On the other hand, indicators that the world economy is going to continue growing remain strong, favouring greater insertion of the Brazilian industry – and that of Paraná – on the foreign market.
*Federation of Industries of the State of Paraná. Translated by Mark Ament
