A new survey by the National Confederation of Industry (CNI) shows how the rise in electricity costs causes losses for the Brazilian economy.
According to the survey, the country will lose around R$ 22 billion in Gross Domestic Product (GDP) by the end of next year, with a drop in consumption and the closing of job vacancies.
In an interview with CNN this Wednesday (3), the manager of economic analysis at CNI, Marcelo Azevedo, explained how the rise in energy costs causes losses in the economy.
With the increase in energy costs, prices increase, causing consumers to start consuming imported goods, if possible, or to reduce their consumption, if what they spent no longer fits into the budget.
“As production is reduced, entrepreneurs realize that they need less labor and end up firing their employees. This reduces household income, causing consumption to decrease even further. Thus, a cascade effect is created”, says Azevedo.
See the full interview above.
Reference: CNN Brasil
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