Brazil’s Industrial Downturn in December Shakes Interest Rate Expectations

INSUBCONTINENT EXCLUSIVE:
third consecutive month of decline
drop, but it still signals trouble
Notably, 16 out of 25 industrial segments experienced declines
economy grapples with high interest rates, sitting at 13.75% to combat inflation
President Lula openly criticizes these rates, arguing they stifle economic progress.Yet, with inflation rates swinging from 4.61% to 3.69%
within 2024, the Central Bank faces a tough decision
January 2025, as analysts like Andres Abadia predict industrial struggles could persist due to elevated borrowing costs and international
support
industrial contraction story underscores a delicate economic balance
Brazil must navigate between stimulating growth and controlling inflation, with every policy decision closely watched by investors and
policymakers alike.