New cycle for Brazil

It is expected that, after the turmoil that Brazil has faced in the economic and political environment in the recent years, much remains to be done so that the Country rediscovers the path to full development of its business environment. And the first steps in this direction, it seems, are already beginning to be given – through demonstration of greater confidence on the part of market agents. With good doses of caution and realism, of course, but already indicating a positive trajectory.

Those who set this tone are nothing less than the representatives of 746 companies that were surveyed by Deloitte for a new and comprehensive survey on the prospects of these organizations for the next year. The “Agenda 2017” survey has identified the priorities and expectations of a group of companies, of all sizes, sectors and regions of Brazil, which amount to R$ 1.6 trillion in net revenues. To get an idea of the representativeness of this sample, the Gross Domestic Product (GDP) estimated by the Central Bank of Brazil for the twelve-month period ended September 2016 was R$ 6.1 trillion.

These companies indicate a forecast of growth in its revenues and also the gradual resumption of investments in the Country, which will impact differently each sector. The infrastructure and construction segments, for example, should be at the front of this process, since they forecast for increasing investments, and also revenues, compared to the previous year.

“This perception of the companies is positive since infrastructure and construction are job generator areas and mobilize vast resources. Thus, we can imagine good prospects and a significant scenery change in relation to employment and income generation”, evaluates Othon de Almeida, Deloitte’s partner who leads the Market Development approach.

The job generation should gain momentum in 2017, after a period with high rates of unemployment – and the search for higher skilled professionals will be at the top of hires to be made.

The interest to invest in launching new products and services and the replacement of machinery and equipment indicates that, after a period of cutbacks, companies must resume the contributions held to improve its operational management.

Companies will prioritize the administrative and financial management, while maintaining a focus on revenue generation and productivity improvement. “It is quite understandable that, during this phase of transition, companies maintain a focus on improving financial and administrative practices. However, even in a moment like the present, organizations must not neglect the efficiency of the management controls”, says Othon Almeida.

In the survey, risk management and internal controls appear as major targets for 2017. Managers also show the intention to prioritize the adoption of best practices in corporate governance since a large part of the respondents said they have not implemented important tools in the area yet.
“The insights from this study will be of immense value so that market agents understand the situation and are positioned to face the challenges of a new Brazil”, concludes the Deloite’s partner.

To access the contents of “Agenda 2017” survey in its entirety, click here