A sign of recovery, at least in the automotive sector, no pun intended, one of the mainstays of Brazilian industry?
No.
O Price publishes today that…
The increase in vehicle production in the last two months of last year gave hope to those who analyze this industry. It seemed that, after three years of crisis, the sector was breathing again. But sales in the domestic market in the first days of the year dampened spirits. The volume of registrations up to the 26th was 3,6%.
below the level of January 2016, one of the worst months in the sector's recent history. The daily average was 13,7% lower than a year ago, according to industry data.
One of the worst, by far: January 2015 saw a drop of 29,3%. The production spasm at the end of the year was essentially to replenish inventories after several automakers were shut down for long periods due to collective vacations in mid-2016.
As was recorded yesterday, on this blogThere is no sign of recovery anywhere, except in financial speculation, which is reaching a dangerous level of irresponsibility.
It's almost curious to see the Federal Government "celebrating" a primary deficit of 2,4% of GDP, the worst in history, with a shortfall of R$ 155 billion, R$ 40 billion greater than in 2015, even with the accumulated "windfall" from the repatriation of capital and including the R$ 50 billion paid off from the so-called "fiscal maneuvers".
We are witnessing a brutal destruction of our ability to generate wealth, and this cannot be rebuilt overnight.
Anyone who was under the illusion that forcing the crisis to deepen was the way out of it – an illusion that dates back to Joaquim Levy – should have long since given up on that idea.
But, as they keep pocketing the money…