Business Immo, the real estate website
Market Beat

Brazil : Industrial Snapshot - Q2 2014

Published on

A research produced by

Brazil : Industrial Snapshot – Q2 2014

 Marked by a reduced demand and slowdown in production due to the World Cup event, the first half reported a low growth in the industry and declined to the same levels of 2009, according to the recent research published by Fundação Getúlio Vargas/IBRE (Brazilian Institute of Economics). Between May and June, the expectation of industrial production fell 7.4% and corroborates a more difficult scenario in the second half if we consider additional factors such as high energy prices and the lack of competitiveness in exports. The economic slowdown is directly reflected in the increase of unemployment, the drop in investments in infrastructure and contributes to decreased share of GDP by the sector.

For the domestic market, a more cautious consumer with high inflationary expectations due to the interest rates, decline in purchasing power and limitation of credit helps to maintain the high inventories of the industry of durable goods without the possibility of a reversal of this scenario for the upcoming months. The production of necessary consumer goods, however, suggests that some companies are more immune to these fluctuations than others and that, in general, the crisis cannot be extended to all sectors.

Source : Cushman & Wakefield

This research is available only to BI or BIE subscribers

Please log in, or contact us to find out how to subscribe