In early 2024, Brazil’s manufacturing industry showed a slight improvement after a decline in the previous year, with industrial production increasing by 2.6%, according to the IBGE. Despite this growth, the sector still lags significantly below its peak in 2011. The industry’s contribution to Brazil’s GDP has decreased since the 1970s and 1980s, leading to a trade balance deficit since 2008.
Experts attribute Brazil’s “premature deindustrialization” to a shift towards service sectors driven by consumer spending and advanced industrial demands. Globalization and manufacturing shifts to lower-cost Asian countries have accelerated this transition.
Reassessing Brazil’s Industrial Strategy
To address these challenges, Eduardo Eugenio Gouvêa Vieira emphasizes the need to address underlying issues, while Rafael Cagnin highlights structural problems exacerbated by economic crises since the 1980s. The diminishing competitiveness of Brazilian manufactured goods is linked to past industrial policies that hindered technology investment.
Rafael Lucchesi advocates for Brazil to capitalize on sectors like biofuels and renewable energy-intensive industries to redefine its economic path. Embracing new technological advances and focusing on competitive advantages are crucial for Brazil to adapt to global changes in the industrial sector.
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