Brazil to shore up industrial sector

Brazil is announcing measures to strengthen the country's industrial sector, which is struggling with an overvalued currency and cheap imports from countries such as China.

The measures announced Tuesday include 25 billion reals (US$16 billion) in tax breaks for the clothing, footwear, software, furniture and other industries that have suffered with Brazil's overvalued currency.

Since 2008, the value of the Brazilian real has risen nearly 40 per cent against the US dollar. As a result, Brazilian exports have become more expensive and less competitive on the international market, while imports have become less expensive.

- AP