According to press reports from Sao Paulo, Brazil is estimated to have lost the equivalent of USD 27.8 billion in investments from domestic and international corporations as a direct consequence of the global recession.

As per report, more specifically this refers to 46 large projects from 32 corporations which had plans to execute investments in the next 4 years, but which now have been cancelled or postponed. This includes investments in such basic sectors as steel, mining, construction, sugar and ethanol processing plants, energy plants and harbor infrastructure.

Steel and mining have suffered cut backs to the tune of USD 12.3 billion. Those hit particularly hard are those directly linked to commodities, the basis of the Brazilian boom and which have suffered the most following the collapse of international demand caused by recession in developed countries and the back fall of Chinese demand.

Vale do Rio Doc has cut or frozen several projects or forced technical stoppages and staff vacations to make supply meet demand. Earlier this month the corporation announced the canceling of a new USD 5.5 billion steel foundry in the state of Espirito Santo in association with China’s Baosteel. The plant was expected to produce 5 million tonnes of steel annually and create 3,000 permanent jobs.

The cut back or freezing of projects also has a direct impact on jobs, 70,000 less than forecasted, a growing headache for the administration of President Mr Lula da Silva.

(Sourced from www.mercopress.com)