The industrial production index measured by Brazil’s National Confederation of Industry (CNI) advanced in August with 54.8 points, against 50.5 in July. The index calculates the evolution in the industrial sector and figures above 50 points indicates growth in production as compared to the previous month.

The same CNI report showed that the usage of installed capacity (UCI) in Brazilian industries grew from 65% to 67% between July and August.

Such figures show private sector is restoring confidence and increasing industrial production after successive decreases during the peak in the country’s economic recession between 2015 and 2016.

In order to reduce costs for Brazilian industries dependent on foreign inputs, the Chamber of Foreign Commerce (CAMEX) recently released a series of resolutions decreasing import taxes for more than 300 capital and IT goods without national correlative, enabling industries to import at a lower cost and increase their production.

These trends open opportunities for UAE suppliers of machinery, equipment, instruments and IT products to enter the Brazilian market, taking advantage of lower taxes and the willingness of Brazilian government to support the private sector to increase production levels.

The list of products benefitted by tax reduction policy include bulk containers, water treatment equipment, packaging machinery, industrial automatization robots, label printers, medical equipment and measurement instruments.

 

Source: National Confederation of Industry, Brazil