RCE G100 Reuniao de Consenso Economico - National and International Economic Trends and Scenarios 2015
03 Apr, 2015, 17:06 BST
SAO PAULO, April 3, 2015 /PRNewswire/ -- At the recent RCE G100 Reuniao de Consenso Economico (Economic Consensus Meeting) of the G100 Brasil, the aim was to undertake a review of the economic outlook for the country in the face of adjustment measures proposed by the central government, and the political fragmentation in the Chamber of Deputies and Senate of the base of support for the Government of President Dilma Rousseff.
The Brazilian economy continues to be anemic, exacerbated by the shortage of credit, the rise in unemployment, high inflation and a consequent drop in real income. The adjustment of exchange rates in general is positive for the economy, favoring export sectors and granting increased competitiveness to industry in Brazil. This is a change that could be inaugurating a new surge in growth.
The greater difficulties now have to do with problems of a political nature. The central government, challenged by its own party supporters, leaves its continuation in question or, in the most likely scenario, faces a loss of governability. The recovery of its prestige and control would entail a new phase of economic growth that, in turn, requires an economic adjustment of considerable proportions, imposing a period of sacrifice on the population and economic actors.
In this light, the current economic team, headed by Minister Joaquim Levy, seems to be the only solution for restoring the confidence of the business community. The effects of the adjustments seem to have impacted sectors of the economy asymmetrically, although all are registering losses in sales compared to earlier years, and are also expressing concern at the intensity of the retraction that will result from this phase of the adjustments.
Among different sectors, the most pessimistic outlook is for electricity intensive industries. Among the most optimistic sectors are: pharmaceuticals and health in general, payment transfers, e-commerce and security. In markets with greater purchasing power, retail and the real estate sector are experiencing a surge of substantial growth.
About G100 Brasil
G100 Brasil is made up of 100 Members (Shareholders and Presidents), active and appointed, bringing together the country's most eminent leaders on the basis of the recognized results of their careers in terms of developing society and its organizations. Its content is guided by Alliances with the FGV Fundacao Getulio Vargas and ESPM Escola Superior de Propaganda e Marketing, as well as a recognized network of National and International Strategic Partners. http://www.g100brasil.com.br
Rodrigo Romero – Founder/President G100 Brasil
MACOB Communications
Deborah Jacob – djacob@macob.com.br (+55-11-9-8925-4970)
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SOURCE G100 Brasil