Fiesp says it is necessary to think beyond Copom

When the Central Bank raises interest rates, sectors of economic activity do not take long to react and criticize the monetary tightening that implies lower growth. One of the most vocal entities of these moments is Fiesp (Federation of Industries of São Paulo).

Under new management, with businessman Josué Gomes da Silva at the helm of the organization since last July, Fiesp adopted an unprecedented tone in its statement on the rise in the Selic rate determined this Wednesday by the BC, to 10.75% per year.

In the very first question, the new management of the Federation states that the Copom’s decisions, in addition to their effects on the economy, “should sound like a warning about everything we fail to do satisfactorily in order to reap economic growth with the generation of employment and income. in a sustainable way”, says the official note.

“The new level of the Selic is very uncomfortable, since the inflation that it aims to combat does not present a suitable profile for an exclusive treatment via an increase in interest rates. But the reasons that move the Copom to curb the already weakened economic activity should be much more disturbing”, the statement continues.

Fiesp also broadens the debate on the conditions for growth by stating that the guidelines for the country’s development cannot be conditioned to conjunctural issues, not only under the actions of the Central Bank and the National Treasury.

“For the Federation of Industries of the State of São Paulo, conjunctural issues, generally short-term and that define the monetary actions of the Central Bank (BC), should not override the structural reasons that influence the national economy. Much more than the BC and the Treasury, it is the powers of the Republic and society that must give guidelines aimed at the common interest of national development”, says the document sent to the column.

This Wednesday, the IBGE released the result of industrial production in 2021, up 3.9%, insufficient to replace the losses of 4.5% in 2020 and 1.1% in 2019. The data show the loss of competitiveness and strength of the sector to recover a strong rhythm of recovery and participation in the Brazilian economy.

When positioning itself on the rise in interest rates, the Fiesp note does not even mention the new level of the Selic, or any indicator or forecast of harmful effects to the country. The tone adopted by the administration of Josué Gomes da Silva seems to want to inaugurate a new model of communication, including the way of presenting the relevance of the sector for the economy.

“In addition to recognizing the virtues of the primary sector and its importance for the Brazilian economy, it is also necessary to aim for the same dynamism for the industrial sector. The manufacturing industry is the main channel for generating innovations and technological spread to other sectors. The expansion of income and the generation of quality jobs are characteristics of the manufacturing industry, with generalized positive impacts, from agribusiness to services. Therefore, Fiesp says: it is necessary to think beyond Copom”, concludes the note.