Interest rates and energy in Brazil
A relevant trend is signalling a worrying situation for future electricity prices in Brazil. Interest rates in Brazil should remain well above the global benchmark.
This means that the cost of amortising investments associated with the expansion of the electricity sector’s production chain, which is by far the most important item, will be substantially higher than that of our “competitors”.
Since Brazil is a country that operates mainly with low value-added activities, the fact that the expansion of the electricity sector “costs more than the competition” puts us further behind in the global race.
It is high time that we question these challenges in order to “turn around this situation”, if we want to “take off” and seek a position in the group of the most developed countries. Or will we prefer to remain underdeveloped?
