Brazil – A country of opportunities
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Transcript of Brazil – A country of opportunities
21/04/23 Presentation title 1
21/04/23 Brazil – A country of opportunities
Brazil – A country of opportunities
Paulo Safady Simão CBIC Chair
National and international representative of employer associations in the construction and real estate industry
BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER
26 States and Federal District
Highway Construction
Sanitation
Real Estate
Construction Segments
UNIONS, EMPLOYER ASSOCIANTIONS AND CHAMBERS
62 Associations
BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER
GENERAL INFORMATION
BRAZIL Brazil – A country of opportunities
RECENT GLOBAL FINANCIAL CRISIS
“The stability of the economy and of the country’s democratic institutions as well as frank dialogue between government and civil society were decisive in successfully confronting the crisis”
A development strategy based on investment and mass consumption (domestic market) was adopted; and ...
Monetary policyReserve requirementReduced interest ratesForeign trade (reserves)
Fiscal policyReduced taxes on productionInvestments in construction
Source: Ministry of Finance, Brazilian Central Bank (BACEN) and CBIC Database
ECONOMIC OUTLOOK
Economic stability;
Average growth of approximately 4.7% per year;
Growth driven by internal demand and by investments in infrastructure and housing;
Investments projected to grow by at least twice the rate of GDP in the coming 4 years;
Notwithstanding forecasts pointing to a renewed global downturn, domestic demand remains robust, international reserves and reserve requirements are higher than in 2008, and the fiscal situation is stronger.
GDP GROWTH RATES
Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.
In the period 2011-2014, the consolidation of investments (driven by construction) and increased domestic demand is expected to spur average annual economic growth of 4,7%.
MIDDLE CLASS ACCOUNTS FOR MORE THAN HALF OF BRAZILIAN POPULATION
Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00; Class C: R$ 1,115.00 – R$ 4,800.00; Class D: R$ 804.00 – R$ 1,115.00; Class E: up to R$ 804.00.Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared and estimated by the Ministry of Finance
Enhanced income distribution has added 29 million to middle class (Class C).
DISTRIBUTION OF ECONOMIC CLASSES IN BRAZIL (% POPULATION)
A MIDDLE CLASS NATION
Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of Finance
COMPOSITION OF BRAZILIAN SOCIAL CLASSES (MILLIONS OF PEOPLE)
BRAZILIAN ECONOMY: FORECAST
* IMF ForecastSource: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.
GENERAL INFORMATION
CONSTRUCTION Brazil – A country of opportunities
THE CONSTRUCTION INDUSTRY IN CONTEXT
Represents approximately 20% of national
industrial output;
More than 2.8 million formal workers;
More than 170,000 licensed companies;
Accounts for nearly 41% of fixed investments
in Brazil.
Source and Preparation: CBIC Database.
GROWTH OF CONSTRUCTION INDUSTRY LABOR FORCE
Source: Annual Registry of Social Information/General Registry of Employed and Unemployed Persons (RAIS/CAGED), Ministry of Labor and Employment. Preparation: CBIC Database.
REAL ESTATE MARKET
Brazil – A country of opportunities
REAL ESTATE MARKET
GROWTH IN REAL ESTATE CREDIT 2002 – 2011 (financing volume)28
Note: New and used unitsSource: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.
Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP)
Brazilian Savings and Loan System (SBPE) – Agreements with more than 3 outstanding installments signed after 1998
HIGH QUALITY REAL ESTATE CREDIT
Mortgage Guaranty + Fiduciary Lien Fiduciary Lien
Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP).Preparation: CBIC Database
REAL ESTATE FINANCING AS A PERCENTAGE OF GDP
Source: Brazilian Central Bank (BACEN). Preparation: CBIC Database
CREDIT TRANSACTIONS BY FINANCIAL SYSTEM IN 2009(AT THE HEIGHT OF THE CRISIS)
Steering of funds at low cost was decisive for maintaining credit levels at the height of the global crisis.
MY HOME, MY LIFE PROGRAM(PMCMV)
Brazil – A country of opportunities
Disbursement of MCMV Program (R$ billion)
*Caixa Econômica Federal estimate.Source: Caixa Econômica Federal. Preparation: Ministry of Finance.
MY HOME, MY LIFE PROGRAM(PMCMV)
HOUSING NEEDS(millions of units)
Source: Civil Construction Industry Trade Union of São Paulo (SINDUSCON-SP), São Paulo State Federation of Industry (FIESP), Getúlio Vargas Foundation (FGV). CBIC Database.
ADDITIONAL GROWTH INDICATORS ...
5.81Cumulative shortage - 2009
23.492010 - 2022
INFRASTRUCTURE
Brazil – A country of opportunities
Source: PAC2 Report.
WHAT IS THE PAC
It is a program of consistent investments aimed at meeting the
challenges of infrastructure.
?
GROWTH ACCELERATION PROGRAM
SECOND PHASE2011-2014
Source: PAC2 Report.
GROWTH ACCELERATION PROGRAM – SECOND PHASE
(R$ million)PAC Projects 2011-2014 After 2014 Total
PAC Better City 57.1 - 57.1PAC Citizen Community 23.0 - 23.0PAC My Home, My Life 278.2 - 278.2PAC Water and Power for Everyone 30.6 - 30.6PAC Transportation 104.5 4.5 109.0PAC Energy 461.1 626.9 1.088.5TOTAL 955.0 631.4 1.586.4
Organizes government measures and
supports private sector action over a 4
year period.
Develops an optimal environment to
enable the country to grow at a faster
rate through the execution of
infrastructure studies, projects, and
works.
Creates the conditions for addressing
the obstacles to sustainable
development.
GROWTH ACCELERATION PROGRAM
Stadiums
Urban Mobility
Ports and airports Environment
sanitationTelecommunications
2014 FIFA WORLD CUP
Brazil – A country of opportunities
(R$ billion)
INVESTMENTS FOR THE 2014 FIFA WORLD CUP
Source and Preparation: Ministry of Finance.
2016 OLYMPIC GAMES
Stadiums
and arenas
Urban Mobility
Ports and airports
Environmentsanitation
Telecommunications
Brazil – A country of opportunities
Note: The expansion of the Port of Santos and the construction of the Açu Port in Rio de Janeiro, the
largest venture investiment in port in Latin America.
Source: CG-LA ExameYearbook 2011-2012. Preparation: Ministry of Finance
Nine major projects of ports in the world (US$ billion)
PORT INVESTMENTS
Sixteen major transport projects in the world (US$ billion)
INVESTMENT PROGRAM IN TRANSPORTATION
Source and Preparation: Ministry of Finance.
High-speed train linking the cities of Rio de Janeiro, São Paulo and Campinas
(R$ billion and % of total)
INVESTMENT PROGRAM IN TRANSPORTATION
Source: STN/Ministry of Finance. Preparation: Ministry of Finance
Airport concession: Planned investments (R$ billion)
INVESTMENT PROGRAM IN TRANSPORTATION
Source: STN/Ministry of Finance. Preparation: Ministry of Finance
ENERGY
Subsalt;Clean Energy;Hydroelectric Plan;Oil and Gas.
Brazil – A country of opportunities
Ten major projects in the Oil and Gas sectors in the world (US$ billlion)
INVESTMENTS IN THE OIL AND GAS SECTOR
Source and Preparation: Ministry of Finance.
Note: If plus ship-oil platforms whith building platforms the total value is US$ 40 billion.
INVESTMENTS IN THE ELETRICITY SECTOR
Fifteen major projects in the Eletricity Sector in the world (US$ billlion)
Source: CG-LA ExameYearbook 2011-2012. Preparation: Ministry of Finance
INVESTMENT FOR THE COUNTRY´S DEVELOPMENT AND GROWTH
Note: Updated in January 2012. Preparation: Ministry of Finance.
OTHERS BUSINESS OPPORTUNITIES
Investment in tourism; Commercial buildings –
shopping malls, warehouses for logistics;
Tecnological Innovation Program
Paulo Safady
Simão CBIC CHAIR
BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER
[email protected]: +55(61) 3327-1013Fax: +55(61) 3327-1393
21/04/23 Presentation title 40