Brazil's economic outlook is still not optimistic

2022-10-14
  • Detail

Brazil's economic outlook is still not optimistic

Brazil's economic outlook is still not optimistic

January 7, 2014

[China paint information] universal polyurethane January 7 - as the largest economy in Latin America, Brazil's economic prospects are still not optimistic. According to the Brazilian Institute of statistics, the Brazilian economy contracted by 0.5% in the third quarter when this standard was published

economists of the Central Bank of Brazil expect the economic growth in 2014 to be only 2.10%, while in August, experts expected the economic growth in 2014 to reach 2.60%. The growth rate expected by economists in 2013 was 2.35%, and the Brazilian economy has shown slow growth for three consecutive years

there are several main reasons for Brazil's slow economic growth

the signal released by the Brazilian government on the policy direction is very vague, which has hit the confidence of investors. Some economists pointed out that the Brazilian government has excessively intervened in the national economy, which is not conducive to attracting investment

officially introduced at the beginning of this year

in addition, this unit has ideal working characteristics. In the past few years, household debt has become more and more serious, so consumers have reduced consumer spending

some economists pointed out that Brazil must ensure that its annual expenditure on infrastructure construction will reach three times the current level in the next 20 years in order to catch up with other important economies

at the same time, Brazil faces some other challenges. Investment accounts for 10% of Brazil's GDP, which is very low. Brazil must deal with these challenges while controlling inflation

in order to control inflation, the Central Bank of Brazil raised the national benchmark interest rate to 10.00%. Alexandre tombini, President of the Central Bank of Brazil, pointed out that Brazil's inflation fell by 92 benchmark points from June to November. In addition, tombini also brings good news that the unemployment rate in Brazil is currently at a record low

in terms of petrochemical market, Brazil's resin consumption lags behind that of other Latin American countries, which means that this market has the potential for rapid development. Due to the fierce competition from abroad, the situation faced by Brazilian producers is very serious

75% of cracking plants in Brazil rely on petroleum based naphtha as raw material, while American producers use gas based ethane as raw material, which means that Brazilian producers are at a significant disadvantage in cost

at present, a large number of polyethylene and PVC in Brazil are imported from abroad. With the expansion of ethylene production capacity in the United States, Latin American countries naturally become the export destinations of the United States

Copyright © 2011 JIN SHI