São Paulo - The number of projects approved by the National Economic and Social Development Bank (BNDES) grew 49% in July, in comparison with the same period last year. This news was announced on Monday (16) by the President of the BNDES, Carlos Lessa.

"This clearly demonstrates that the private investment rate is beginning to recover in the country, and its definitive recovery demands that government investment follow the same course," Lessa remarked.

According to Lessa, the capital goods segment (industrial machines and equipment) is one of the BNDES's focuses, because it provides support to the industrial sector.

In global terms, the capital goods industry does US$ 1 trillion in business annually. In Brazil the segment should end the year with US$ 6 billion. The prosperity of the capital goods segment was stressed by the Executive Secretary of the Ministry of Development, Márcio Fortes.

He recalled that in the first five months of 2004, the nominal earnings of the capital goods industry amounted to US$ 5.44 billion, 19.1% more than during the period between January and May, 2003. The utilization rate of installed capacity rose from 76% to 80%. The number of job positions in the sector increased 8%, from 179 thousand to 197 thousand workers. Export volume grew 30%, from US$ 1.8 billion to US$ 2.4 billion.

Agência Brasil
Reporter: Mylena Fiori
Translator: David Silberstein
08/18/2004