The Federation of Industries of the State of Rio de Janeiro (Firjan) highlights that industrial production in July — a 0.2% decline compared to June, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) — reflects the challenging scenario faced by the national industry. The federation stresses that this marks the fourth consecutive month without growth, worsening the lack of business confidence. This discouragement raises a red flag, as it may lead to production cuts, project delays, and reduced hiring — factors that could trigger a new sector crisis.

In addition to immediate measures aimed at mitigating the impact of external tariffs, Firjan considers it essential to adopt structural solutions. The high interest rate — currently at its highest level in nearly 20 years — is not just an isolated issue but rather the outcome of a fiscal policy focused on revenue expansion and changes in the criteria for measuring fiscal targets. Only with a firm commitment to fiscal discipline will it be possible to create the conditions necessary for a sustainable reduction in interest rates. Without such measures, the path toward recovery for the national industry — which still operates about 15% below its historical peak registered in 2011 — is likely to remain slow and challenging.