Level of industries planning investments achieves 95%
Folha de S. Paulo - 06/19/2008
In order to meet the increase of the domestic demand, 95% of the manufacturers intend to increase their investments. This is the highest level since at least 1998, when the FGV (Getulio Vargas Foundation) started making the Transformation Industry Survey. The businessmen are focused especially on the increase of the installed capacity, in other words, in the structure that allows increasing the level of production. This type of investment went from 47% in 2007 to 56% in 2008, at the expense of investments in productivity increase (from 34% to 28%), according to data released yesterday by FGV. "The investment in productivity increase is the first reaction to get rid of bottlenecks", said the vice-director of Ibre (Brazilian Institute of Economics) from FGV, Vagner Ardeo. "Now they effectively increase the capacity. The industries are replacing a palliative alternative for one that is definitive". For the Iedi (Institute for Studies in Industrial Development) consultant, Julio Gomes de Almeida, the country goes through a "cycle of generalized investment". "Other indexes show this, as the GDP of the first quarter", said, reminding that the investment rate grew 15.2% in the first quarter, compared to 2007. "The data of the economy guarantees increase of the demand. The size may be discussed, but not whether it will grow or not", says Alcides Leite, professor of the Trevisan Business School. In the sector of consumption goods, more sensible to the increase of the internal demand, 62% of the industrials intend to increase the productive capacity, against 43% from the 2007 survey. For Paulo Francini, director of the Department of Economic Researches of Fiesp (Federation of Industries of the State of São Paulo), the figures show there will be no lack of industrialized products. Still according to the survey, 74% of the companies surveyed said they have no difficulties to invest. For the other 26%, the major reason of investments restraint is the high tax burden.