Overheating Fears Highly Justified

A 27.2% month-on-month (m-o-m) increase in auto exports in May, according the National Association of Motor Vehicle Manufacturers (Anfavea), which prompted carmakers to step up production 6.6% m-o-m and 14.9% on a year-on-year (y-o-y) basis, are raising fears the Brazilian economy is showing signs of overheating and that output capacity is not strong enough to keep pace with demand.

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