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Latin American Economy & Business - March 2015 (ISSN 1741-7430)

Brazil: Tough outlook for industry

The Brazilian political and economic crisis is taking its toll on the industrial sector. The main problem is caused by low levels of consumer and investor confidence, reflecting the political crisis over corruption, at a time when fiscal austerity measures are restricting demand. Despite this, according to the national statistics institute (IBGE), industrial production rebounded by 2% month-on-month in January, the biggest gain in 19 months. Unfortunately, it looks more like a blip than a trend.

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