The challenge of low productivity.
Tax breaks have encouraged textile companies to hire, but they continue to struggle against competition from imports.
Declining industrial production provokes calls for reduction of bureaucracy and the tax burden.
Our proprietary survey of 37 recruitment agencies suggests Brazil created more jobs last month. In March our indicator of job matches, which is a proxy for job creation, rose to its highest level since November. In addition, more recruiters saw an increase in job matches compared to the same month of last year.
The likely appointment of Abílio Diniz has raised hopes of the company, but the shift to being a value-added producer remains a struggle.
Maybe industry is beginning to emerge from the doldrums but the recovery is still fragile
Strong figures in January have only marginally improved the outlook for manufacturing.
Draft legislation could loosen the grip of informal security businesses, and grant judicial certainty to foreign investors. Yet much would depend on implementation.
Our survey of businesses in Pernambuco and Goiás confirms difficulties in hiring and retaining staff, although there are signs that finding educated workers has become easier in recent months.
A review of where Brazil Confidential stood on the major macro issues in 2012, and how our forecasts stacked up against events.