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Brasilia . Industrial production in Brazil was reduced in May to its most pronounced rate in a decade, highlighting the hard blow that the national truckers strike has developed in the last few weeks of this month hit the sector.
10.9% compared to April, the Brazilian Institute of Geography and Statistics (IBGE) reported Wednesday, its largest decline since December 2008. However, the contraction was less than 13.8% expected in a Reuters poll.
The mobilization of truckers – to protest, among other things, because of high diesel prices – has caused blockages on the main roads of the country and led farmers to throw milk and slaughter animals, measures that have had repercussions on the entire Brazilian economy
Of the 26 sectors monitored by the IBGE, 24 were located in negative territory. The only two categories with positive numbers were those of coke, petroleum derivatives and biofuels, and the mining industry, segments that do not depend so much on highways for transportation.
Of the 26 sectors that IBGE follows, 24 were located in negative territory. The only categories with positive numbers were those of coke and extraction.
"Strikes have altered the production process itself, both through the supply of basic materials and production logistics," says IBGE economist André Macedo.
Industrial production was reduced by 6.6% compared to last year, a more moderate decline than the consensus of a decline of 11.5%.
Last week, the Central Bank lowered its forecasts for the growth of the gross domestic product of 2018 taking into account the effects of unemployment. However, it is not known yet how long the impact of the mobilizations will be.
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