Brazilian industrial output ends 2023 with 0.2% surge

The country’s industrial output saw a 1.1% increase in December, marking the fifth consecutive month of positive results. As a result, Brazil’s industrial sector concludes 2023 with a 0.2% growth. In 2022, there had been a 0.7% decline. These figures were released on Friday (2) in Rio de Janeiro by the Brazilian Institute of Geography and Statistics (IBGE).

This outcome helps elevate factory production to a level higher than before the pandemic, standing 0.7% above February 2020. However, the productive sector is still 16.3% below the highest level ever recorded in May 2011.

Despite ending the past year on a positive note, only nine out of the 25 surveyed sectors showed production growth. Positive highlights were noted in extractive industries, petroleum-derived products biofuels, and food products.

Among the activities with negative indicators are motor vehicles, chemicals, machinery and equipment, machines, electrical appliances, and computer equipment, electronic and optical products.

Distinct trade patterns

According to the survey manager, André Macedo, 2023 was marked by two distinct periods. The first semester saw a predominantly negative performance in the overall industry, with a 0.3% decline. In contrast, the second semester witnessed an improvement in the pace of industrial production, resulting in a 0.5% growth.

“This is also very evident when we observe the month-on-month indicator, with five consecutive months of positive rates, culminating in a 1.1% expansion in December. As a result, the year’s cumulative, which remained negative for a significant part of 2023, turned positive,” he notes.

The IBGE researcher explains that the 2023 result is considered practically stable, indicating modest growth. Among the factors contributing to the industry’s performance, he lists the positive behavior of the labor market, with an increase in income and controlled inflation, especially in the food products segment.

Earlier this week, the IBGE reported that last year’s average unemployment rate was 7.8%, the lowest since 2014. Additionally, the official inflation ended last year at 4.62%.

“It’s worth noting the positive contribution of exports, especially regarding commodities [basic raw materials traded at international prices]. Throughout the year, we also observed the beginning of monetary policy easing with a reduction in interest rates,” he concludes.

Source: Agência Brasil

Click here to read the original news report: https://agenciabrasil.ebc.com.br/economia/noticia/2024-02/producao-da-industria-fecha-2023-com-alta-de-02#

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