Brazil's reindustrialisation will be economic priority

Significance

Manufacturing’s share of GDP has declined over recent years, deepening deindustrialisation. Vice-President Geraldo Alckmin, also the development, industry, trade and services minister, is to lead a re-industrialisation programme. The Brazilian National Development Bank (BNDES) may also regain its role of financing industrial growth under economist and politician Aloizio Mercadante.

Impacts

• Sluggish productivity growth will remain a key industrial bottleneck.
• Policy directives will seek to link reindustrialisation to sustainability.
• Controversies over macroeconomic policies and doubts over the economic outlook may delay Brazilian reindustrialisation.