Brazilian industry: Recent performance and future challenges

Abstract

The Brazilian industry has shown signs of recovery in terms of generation of employment and added value at the beginning of the twenty-first century, in sharp contrast with the stagnation observed in the last two decades of the twentieth century. But after the global crisis of 2007/2008, it has experienced difficulties in maintaining its momentum faced with at the international level. This chapter seeks to present the recent performance of Brazilian manufacturing industry, emphasizing the difficulties encountered in the post-crisis period, given the fierce competition at the international scenario, which resulted in rapid growth of imports in the internal market and difficulty to expand exports. An overview of the evolution of Brazilian industry is presented in terms of production, investments, international trade, and innovation. This chapter also seeks to highlight the main challenges ahead for the Brazilian manufacturing industry to recover its dynamism and contribution to Brazil’s economic development.