Brazil's growth on a shallow BRICS road
Euromonitor International's newly released e-book "Brazil's Business Environment: Consumption in Economic Slowdown" evaluates how the Brazilian income growth, combined with an expansionary monetary policy and poor productivity, has contributed to a deterioration of the country's purchasing power. It also forecasts the impact on consumer markets through 2019.
Over the last decade, Brazil has benefitted from favourable macroeconomic conditions as rising global demand for commodities sparked an export and consumption explosion. During 2009-2014, Brazil's economy presented an average real growth of 2.7% per year, peaking in 2010 with Brazil´s Gross Domestic Product growing by 7.5%. However, the consumption-led model reached an exhaustion point and the economy has lagged behind since 2012.
Among the 31 selected industries analysed by Euromonitor, more than 50% will not repeat positive performance from previous years. "Expected softer consumer demand will require fast moving consumer goods companies operating in Brazil to adapt their strategies. This e-book analyses the impact the economic slowdown will have across different industries," says Associate Consultant, João Luiz Paschoal.
The slowdown will affect Brazilian industries overall, with decreases in consumer electronics, consumer appliances and soft drinks. Industries related to staple items such as foods, hygiene, personal care and consumer health would be less affected by the economic slowdown.
Download the Brazil's Business Environment: Consumption in Economic Slowdown whitepaper here.
