Business

Brazil’s industry struggles to weather Covid-19 crisis

Industrial production in Brazil has seen record drops during the Covid-19 pandemic, with demand dwindling and investments plummeting

Brazil’s industry struggles to weather Covid-19 crisis
Workers in Mogi das Cruzes. Photo: Alf Ribeiro/Shutterstock

With the first figures on the economic impacts of the pandemic coming to light, the toll that social isolation and lack of demand has taken on Brazilian industry is evident. While a steep fall in production and plummeting investments were already expected due to stay-at-home measures, the fact that this coincided with a pained recovery from the 2015-2016 recession sparks concerns about how well the sector will be able to regain its footing in the post coronavirus economy.

Data from the Institute for Applied Economic Research (Ipea) shows that investments in fixed-capital assets — such as machines, equipment, and...

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