Economy & Business - July 2009 (ISSN 1741-7430)

Although industrial production fell by a record 13.4%, year-on-year, in the first half of 2009, the economy is clearly on the mend. The main reason of the recovery is the strength of consumer demand. On 28 July the central bank reported that bank credit stood at a new record. The figure, 43.7% of GDP, is flattered a bit by the lack of growth in the rest of the economy. What is important is that at R$1.28 trillion (US$645bn) bank credit is 19.7% higher than in June 2008.