Industrial Production in 2023: A Year of Challenges

Industrial production in the country fell into negative territory in 2023, interrupting the positive performance recorded between 2021 and 2022. One of the main factors behind this decline was the drop in oil extraction, which had a significant impact on industrial production.

In addition, there was a sharp decline in the production of intermediate goods last year, highlighting the fragility of the industrial sector in the face of fluctuations in the oil sector.

“For the country to achieve robust industrial growth without depending on oil, oil prices must remain at the levels seen in recent years. In this way, policymakers will continue to strive to diversify the economy by strengthening domestic production, particularly in the agriculture and manufacturing sectors.”

2. Interview with Luís Diogo, General Manager of Fabrimetal

In an interview with EXPANSÃO newspaper, Luís Diogo, General Manager of Fabrimetal, emphasized the need for stable oil prices for robust and independent industrial growth.

“We can only reduce production costs by maximizing the level of internal production.”

Luís Diogo emphasized that the country is already facing the consequences of an economy that is overly dependent on oil and imports. According to him, reduced investment and short-term economic uncertainty will perpetuate a discouraging scenario for the productive sector in 2024, unless more attractive policies are adopted.

3. Dependence on Tax Incentives

Several business leaders emphasize the need for tax incentives and the reduction of customs duties for basic necessities and raw materials. These incentives are essential to boost domestic manufacturing production at more competitive prices.

“Incentives must be created to boost domestic production and consequently reduce production costs in the national industry.”

3.1 Customs Tariff

Customs duties are taxes levied on imported goods. The rules and rates vary greatly across countries, and often differ for each type of product.

What is the Customs Tariff for?

•  Harmonize, designate, and code goods;
• Implement the state's fiscal and economic policies;
• Protect public health and provide statistics.

Read more about the new Customs Tariff here.