Brazilian Mining Downturn Not a True Reflection of the Industry

The primary source of Brazil's economic woes?

It's been a tough year for the Brazilian mining industry; however, that's not entirely their fault. Other factors have been at work. For one thing, the downturn is related in some part to the country's overall industrial downturn. Inflation, rising interest rates, and government spending cuts have worked together to weaken consumer demand.

Because everything rises and falls on leadership, Brazilians have no one to thank but their leaders. We use that term leader quite loosely in this instance. The country's president faced impeachment at the beginning of October; however, her accusers hardly fell on the side of righteousness:

The real tragedy is that in this political drama those involved are almost all villains. Within the PSDB (Social Democratic party), which narrowly lost the elections to the PT (Workers’ party) in 2014, every political hopeful is in search of a strategy to guarantee a seat in government, putting their personal ambitions above the interests of the country (The Guardian).

With such shenanigans taking place at the highest levels, is it any wonder that the country's industries are suffering?

Many have directly blamed the government for Brazil's steadily sinking GDP, claiming that the recent mining downturn is more a political problem than an industrial one. We tend to agree with this assessment.

Since we routinely ship tires to mines in both North and South America, we have a vested interest in seeing things turn around; but that's not our greatest concern. We stand with the hard-working men and women of the mining industry. We wish our Brazilian brothers and sisters the best of luck in the days to come.

If you have any questions or comments, or if you would like to hear about our latest deals, don't hesitate to contact us.

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