Não categorizado | Edition 54
Manufacturing and infrastructure forecasts for 2018
Presidents of the National Confederation of Industry and the Brazilian Association of Infrastructure and Basic Industries commented the perspectives for their sectors in 2018October-December | 2017
October-December | 2017
What are the expectations for Brazil’s economy and for your segment in 2018?
“The control of inflation, the drop in interest rates and advances in the macroeconomic agenda were important to decongest the budgets of companies and households and stimulate the return of consumption. The CNI's expectation is that this favorable environment will continue in the next year. The re-establishment of consumption and the improvement of the economic environment will boost the industrial activity in 2018. The (industrial) sector will continue interacting with high idleness, caused by a drop in production in recent years. However, advances such as the labor legislation reform, the overcoming of political uncertainty and the need for businesses to adapt to new technologies should improve the willingness for investments in 2018, opening a new cycle of growth of the industry and the economy.”
“This year, we estimate that investments in infrastructure will add to 1.5% of GDP. It not enough. Only to cover depreciation, the need for investment in the sector borders 3% of GDP. This metric rises to 5% of GDP if the goal is to equip Brazil with an infrastructure capable of increasing the economy's competitiveness and productivity, as well as to promote its international participation. There is a lot of difficulty, especially in new projects, the greenfields. There is not a lack of resources; there is a lack of good projects, especially greenfields, given that the State has not invested its best efforts in long-term planning, able to assertively identify projects that need to be executed. It is possible to have better performance in infrastructure investments from the private sector. However, the public sector needs to expand the contributions; in sectors such as transport and sanitation, the State still holds great participation.”
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