Brazil’s development bank, BNDES, significantly increased credit approvals for the industrial sector. Specifically, BNDES approved R40.8 billion in credits in the first nine months of 2023. This represents a 92% increase compared to the first nine months of 2022. Consequently, the Brazilian government aims to strengthen manufacturing and diversify the economy.
Industry Takes Credit Lead Over Agriculture
Historically, agriculture received more BNDES credit. However, in 2023, the industrial sector received 27% of total credit approvals, surpassing agriculture’s 26%. Therefore, this marks the first time since 2016 that industry led. The government targets R300 billion in industrial sector investments by 2026. BNDES will allocate R250 billion of this amount. This shift indicates a new industrial focus.
BNDES Drives Industrial Expansion and Diversification
BNDES’ increased funding reflects a policy to boost industrial competitiveness. In January 2023, Brazil unveiled a new industrial plan. This plan aims to attract investments in steel, renewable energy, and high-tech manufacturing. Consequently, job creation, economic stability, and industrial modernization are expected. R250 billion from BNDES drives this industrial transformation.
Long-Term Industrial Growth Strategy
Vice-President Geraldo Alckmin states that BNDES’ support for industry is key to long-term growth. By focusing on manufacturing, Brazil positions itself for sustainable growth. Technological innovation and economic stability are also goals. This increased funding influences demand for industrial metals. SuperMetalPrice monitors these developments.
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