Some relief on Tuesday for a Brazilian government getting desperate for signs of life in the economy: more motor vehicles were made in Brazil in April (340,865) than in any other month in history. Considering the auto sector makes up about a fifth of Brazilian industry, that’s got to be good news. Hasn’t it?
Well, yes and no. Continue reading »
Is inflation getting out of control in Brazil? The national statistics office said on Thursday that consumer prices rose by 0.86 per cent in January, bringing the annual rate to 6.15 per cent. That’s up from 5.84 per cent in December and heading closer to the upper limit of the government’s tolerance range of 6.5 per cent, two percentage points above its inflation target.
The target, it seems, has been forgotten. And if industrial production figures out this week are any guide, it is unlikely to be remembered any time soon. Continue reading »
Brazil’s industrial production rose less than expected by 0.2 per cent in June from May. Not exactly a reason to celebrate you might think…
However, the country’s finance minister Guido Mantega heralded the data on Wednesday as the “turning point” for the country – proof that the economy was beginning to gain momentum.
If anything though, Mantega’s response is a sign of just how bad things have got for the world’s second-biggest emerging market economy. June’s data was in fact the first rebound after three straight months of declining output. Continue reading »