Keite Camacho
Reporter Agência Brasil

Brasília – Moderate industrial sector growth in the second half is what Brazil can expect, says Flavio Castelo Branco, of the National Industrial Confederation (CNI), as he announced the latest CNI survey which showed the sector operating at almost 83% of installed capacity.

Castelo Branco said that first half growth was inhibited by high interest rates. But he said that if the rates fall beginning in August it would be a "positive sign for future growth."

However, Castelo Branco pointed out that it is not just interest rates that influence growth. He cited the fact that investments were not getting incentives. it was difficult to obtain long-term loans and there were serious problems with infrastructure. "That all puts a brake on investments and makes them more expensive," he said.

Translator: Allen Bennett