Brazilian geography and statistics institute IBGE informed that industrial production in the country increased 0.4 percent in August from July, lower than expectations by analysts, although recovering part of the 0.6 percent decline from June to July.
On a yearly basis, the industrial production increased by 0.5 percent from August 2022, while considering the 12-month period to August, the industrial production was roughly stable, with a decrease of 0.1 percent.
With such results, the industrial sector shows an 18.3 percent reduction from the all-time record of 2011, remaining still 1.8 percent below the pre-pandemic level of 2020. According to IBGE, 18 out of 25 industrial sectors have registered a growth from July to August.
During a panel of the Brazilian steel institute IABr congress last week in São Paulo, the reduction of the participation of the industrial production in the Brazilian GDP was discussed, with some analysts concluding that this is a worldwide tendency, chiefly among more developed countries, while others argued that so far this is not the case in Brazil, considering its stage of development.
Data from IBGE shows that the importance of the industrial production in the Brazilian GDP declined by 33 percent over the last ten years.