Brazil Industrial Production Falls in February in Latest Blow to Lula da Silva

Industry in Brazil is suffering as the central bank holds the benchmark rate firm at 13.75% to fight inflation

Luiz Inácio Lula da Silva.
By Andrew Rosati
April 19, 2023 | 09:46 AM

Bloomberg — Brazil’s industrial output slid in February on a decline in chemical products and food, dragged down by expensive borrowing costs and weakening demand in the latest worrying sign for the economy.

Production fell 0.2% from the month prior, matching the median forecast from analysts surveyed by Bloomberg. From a year ago, industry dropped 2.4%, the national statistics institute reported on Wednesday.

Industry in Brazil is suffering as the central bank holds the benchmark rate firm at 13.75% to fight inflation. The policy has infuriated President Luiz Inacio Lula da Silva, who is vying to spur growth and lift living standards in his third term.

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