The confidence of industrial entrepreneurs should only be resumed after this year’s elections. This is the assessment of the finance professor at IBMEC in Brasília, William Baghdassian.
According to the index released by the National Confederation of Industry (CNI), there was a drop in 18 of 29 sectors analyzed in July.
The sector of infrastructure works was one of those that registered the greatest advances in confidence, with an increase of 2.3 points in relation to the month of June.
In an interview with CNN Radio the professor explained that the research is relevant “because it does not show the behavior of the entrepreneur today, but what he thinks for the coming months and years, if there is no investment now, 12 months from now, it will not generate employment.”
“When the entrepreneur is more confident, he invests more and, consequently, generates more vacancies”, he added.
According to the economist, “while it is not clear what will happen in the elections, the entrepreneur will be more reticent to invest.”
He points out that confidence will only be resumed after the elections, which take place in October.
At the same time, Baghdassian explained that the number, in relation to the CNI historical series, which began in 2012, is good, as there were worse data between 2014 and 2016 and during the peak of covid-19 in 2020.
The professor points out that the international scenario, in addition to the instability generated by the elections, is also a factor that causes concern to the business community.
“The United States started to raise interest rates, inflation was outside the average history there, it brought a reduction in demand and fear of recession, there is the war in Ukraine, which impacts fertilizers, commodities and energy, an entire chain depends on energy , and affects economic growth,” he said.
In addition, he reinforces that Covid-19 can still cause problems, especially since vaccination is unequal in the world and new variants can emerge and lead to closures in the economy, as happened in China.
*With production by Isabel Campos
Source: CNN Brasil
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