Pedro Z. Malavolta
Reporter - Agência Brasil

São Paulo - The growth in industrial activity in Brazil in 2004 will be the greatest since 1986. This conjecture was made by Aloísio Campello, an economist at the Getúlio Vargas Foundation's Brazilian Economics Institute (Ibre/FGV), on the basis of a Brazilian Institute of Geography and Statistics (IBGE) study that will be released on Friday (11).

Last Thursday (3), the Federation of Industries of the State of São Paulo (Fiesp) announced the Activity Level index for industries in São Paulo in 2004. Growth last year amounted to 8.5%. Campello believes that "the growth of industry nationwide should be similar."

He estimates that the IBGE study will show a growth rate of between 8% and 8.2% for industrial activity in Brazil altogether. "This will be the greatest growth since 1986," Campello emphasizes.

According to the economist, it is common for industrial activity to increase after bad years. 2003 was a bad year. He pointed out, however, that Brazil's growth represents more than mere recovery. For Campello, there was a favorable setting, including the increase in foreign demand and more available credit.

Translation: David Silberstein