Weekly Report - 06 October 2011 (WR-11-40)

BRAZIL | Industrial policy or protectionism? Industrial output fell 0.2% month-on-month in August, from a revised 0.3% growth in July. It was the tenth consecutive month of declining activity. The annual growth figure was 2.3%, the weakest since April. Local manufacturers complain that they are unable to compete with a flood of cheap imports and the strength of the Real, prompting official measures to support the industrial sector including tax incentives and import restrictions.