Alacero 2020: Officials from Brazil and Mexico discuss rebound of economy

Tuesday, 10 November 2020 00:12:38 (GMT+3)   |   Sao Paulo

Two government officials from Brazil and Mexico shared their thoughts about the rebound of economies in Latin America during the Alacero conference, which was held online this Tuesday.

Brazilian Secretary of Productivity, Employment and Competitiveness, Carlos da Costa, praised the achievements of Bolsonaro administration, saying the government has worked to improve the local business environment.

Costa said Brazil has a cost of doing business, known as the Brazil Cost, of about BRL 1.5 trillion ($277.4 billion). However, such a cost reportedly declined to BRL 1.2 trillion ($221.6 billion).

Costa said that despite the pandemic crisis, the Brazilian industrial segment as whole is growing strongly, with a sharp demand that hasn’t been fully met.

“The Brazilian steel industry is today working 24/7. Most mills resumed activities. And we even lack rebar and certain flat steel products (due to the growing demand), which has been met,” Costa said.

Graciela Marquez, Mexico’s economy secretary, said Mexico experienced a “severe” slowdown of economic activity between April and May, however, the country is already seen signs of a recovery. Marquez said Mexico is focused in solving structural problems first.

Sergio Leite, CEO at flats producer Usiminas, said the steel industry in Latin America has faced a challenging eight-month period, with declined activity in the first four and a rebound in the past few months.

“These have been eight months of intense activity. The economy was strongly impacted in the first four months. The automotive industry in Latin America halted for a while, impacting the local steel industry. And in the past few months we’ve seen a rebound of steel activity. The steel industry in Latin America is recovering,” he said.

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