Analysis of Key Sectors of Brazil | Investments and Opportunities |
Analysis of Key Sectors of Brazil: Healthcare & Pharmaceuticals, Infrastructure, Retail, Tourism, and Banking & Finance (2015-2020)

PUBLISHED

DEC 2017

Analysis of Key Sectors of Brazil: Healthcare & Pharmaceuticals, Infrastructure, Retail, Tourism, and Banking & Finance (2015-2020)

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When the global economic crisis hit in the 2008-09, having no more than a moderate impact on the Brazilian economy, erstwhile President Luiz Inácio Lula da Silva of Worker’s Party having won the Presidential election in his 3rd attempt felt inclined to alienate himself from free trade and an open market associated with globalization. In 2010, in the face of increased state spending, the GDP reached the next highest of about 9.3% in the first quarter of 2010. In 2011, under the determined leadership of Dilma Rousseff assumed office, the Brazilian government’s will to protect against cons of globalization morphed into a preference for the Capitalism model of growth. This developmentalism form of government increased inflation while prices of key utilities affecting the inflation index, like food, oil, and electricity were capped. Moreover, tax breaks for preferred sectors were granted, while the Petrobras scandal involving politicians and well over US$2 billion in siphoned money raged on.

The deceleration in China’s economy combined with speculations of a hike in USA’s interest rates has inspired austerity, which has exacerbated the conditions in Brazil. The rate of joblessness is increasing while the country has little social security for those who have been laid off in response to closing manufacturing units. The Real lost against the dollar, making imports costlier. Over the past year, nearly 0.5% of the GDP, or about US$27.3 billion had been racked up in deficits. Brazil’s GDP, once growing YoY at 10.10% in 1995, is now contracting at 0.20% YoY from existing US$2.3 trillion. Inflation is worryingly high at 8.13%. The question that pulsed in everybody’s minds: What can be done about this?

The answer came in the form of economic reforms spear headed by Joaquim Levy, Chicago-educated Brazilian Finance Minister, who painstakingly convinced senators that austerity is the only way to remedy the deep running issues and to avoid losing the investment grade. Interest rate has been hiked to a record 13.25%, highest in 6 years to reflect investment friendly sentiments. Tax breaks for preferred industries, as well as subsidies on fuel have been removed.

Attempts are being made to achieve normalcy again. Aiming at the primary fiscal surplus target of 1.2% of the GDP within the year, Mr Levy remains positive about taking it to 2% gradually. Real gained against the dollar in response to tightening of fiscal measures. Petrobras regained its lost grace and led the surge in the stock market, while also signing a deal of US$3.5 billion with China. Investors should expect better corporate governance in return from this: not a bad gain for long term investors in one of the largest economies of the world.

Brazil is the 6th most populated country in the world. Its consumer market is set to overtake that of France and UK by 2020, becoming the 5th largest in the world. Its middle class is 100 million strong and rising, with a GDP per capita increasing from the current US$11,208. The dismal income inequality gap has been steadily closing. In view of the recent fiscal tightening measures, a short term slump can only be followed by prosperity in the long term.

Drivers

Infrastructure will drive Brazil’s growth, on the back of US$850 billion in state allocated as well PPP generated funds to be used on transport (road, rail and ports overhaul) and energy infrastructure, construction driven by the upcoming Olympics. An expanding middle class, especially in Brazil’s interior cities, with the country’s disposable incomes rising at 14% between 2001 and 2011, will fuel a rising retail sector, especially in the Franchising area despite a currently contracting retail market. Pharmaceuticals growth has decelerated from double digits, but may well continue at a solid 7 to 9% annually. Tourism will experience growth from the regional and international markets, and the famous regulatory frameworks in place in the Brazilian finance market will bound back.

Constraints

A slowing economy reflected in tighter purse strings, depreciating real, high level of corruption and bureaucracy the government seems entrenched in make for macroeconomic constraints. Moreover, Government protectionism and intervention in key infrastructure projects discourages investors, while some which are already approved are being halted on grounds of corruption and lack of funds.

What the report offers

The study identifies the situation of Brazil and predicts the growth of its Key Sectors. Report talks about growth, market trends, progress, challenges, opportunities, government regulations, technologies in use, growth forecast, major companies, upcoming companies and projects etc. in the Key Sectors sector of Brazil. In addition to it, the report also talks about economic conditions of and future forecast of its current economic scenario and effect of its current policy changes in to its economy, reasons and implications on the growth of this sector. Lastly, the report is segmented by various forms of Key Sectors available in the country.

1. Introduction

                1.1 Report Description

                1.2 Research methodology

                1.3 Definition of the Market

                1.4 Areas covered

2. Executive Summary

3. Key Findings of the Study

4. Market Overview

5. Introduction

6. Economic Indicators

                6.1 GDP

                6.2 GDP Growth

                6.3 Inflation rate

                6.4 Interest Rate

                6.5 Jobless Rate

                6.6 Fiscal Deficit

                6.7 Current Account Deficit

7. Market Segmentation

8. Investment Opportunities

9. Market Dynamics

10. Healthcare & Pharmaceuticals

                10.1 Drivers

                                10.1.1 Growing Middle Class with Higher Purchasing Power

                                10.1.2 Ageing Population

                                10.1.3 Healthcare Becomes National Priority

                10.2 Restraints

                                10.2.1 Limited Market Infrastructure outside of South East

                                10.2.2 High Taxes

                                10.2.3 Protectionism

                                10.2.4 Limited Talent Pool

                10.3 Opportunities

                                10.3.1 Retail Market

                                10.3.2 Private Institutions

                                10.3.3 E-Health

                                10.3.4 E-Commerce

11. Infrastructure

                11.1 Drivers

                                11.1.1 Rise in Private Public Partnership

                                11.1.2 Transport Concession Infrastructure Encouraged

                                11.1.3 Government Spending Targets

                11.2 Restraints

                                11.2.1 Suspension/Scrapping of Some Projects

                                11.2.2 Bureaucracy

                                11.2.3 Corruption

                                11.2.4 Government Intervention

                                11.2.5 Constitutes Low Proportion of GDP Spend

                11.3 Opportunities

                                11.3.1 High Speed Railways Investments by Government

                                11.3.2 2016 Olympics

                                11.3.3 Privatization of Airports

                                11.3.4 Housing Investment (Minha Casa Minha Vida )

                                11.3.5 Accelerated Growth Plan (PAC)

12. Retail

                12.1 Drivers

                                12.1.1 Growing Middle Class with Higher Purchasing Power

                                12.1.2 Competitiveness

                                12.1.3 Advanced Technologies

                                12.1.4 Changing Consumer Trends

                                12.1.5 Economic Growth

                12.2 Restraints

                                12.2.1 Recession Gives Rise to Spending Cuts

                                12.2.2 Government Health Discourages Investment

                                12.2.3 Slow Economic Growth

                                12.2.4 Introduction of GST

                                12.2.5 High household debts

                12.3 Opportunities

                                12.3.1 Development Opportunities and Market Potential in Interior Cities

                                12.3.2 Leveraging Superior Franchising Knowhow

                                12.3.3 Non Commodity Exports

13. Tourism

                13.1 Drivers

                                13.1.1 Weaker Exchange Rate

                                13.1.2 Sao Paulo's Metro System

                                13.1.3 Leasure and Entertainment

                                13.1.4 Urbanization

                                13.1.5 On Arrival Visa facility to most of the countries

                                13.1.6 Olympics 2016

                13.2 Restraints

                                13.2.1 Transport (Road, Rail, Air) Infrastructural Deficits

                                13.2.2 Inadequate Number of Hotels

                                13.2.3 Domestic Tourism Declines

                                13.2.4 High Fares

                13.3 Opportunities

                                13.3.1 Olympics inspired International Tourism

                                13.3.2 Broker/Advisor

                                13.3.3 Travel Agents

                                13.3.4 Resorts/Hotels

14. Banking & Finance

                14.1 Drivers

                                14.1.1 Skilled Labours

                                14.1.2 Increasing Banking Needs

                                14.1.3 People Tend to Save Money

                                14.1.4 Investments

                                14.1.5 Growing Secondary Market

                14.2 Restraints

                                14.2.1 Low Interest Rates

                                14.2.2 High Non Performing Assets

                                14.2.3 Closed Stock Market for Foreigners

                14.3 Opportunities

                                14.3.1 Broker in Stock Exchange

                                14.3.2 Demat Services

                                14.3.3 Merchant Banking/Investment Banker

15. Industry Value Chain Analysis

16. Industry Attractiveness – Porter’s 5 Force Analysis

17. Industry Policies

18. Healthcare & Pharmaceuticals

                18.1 Summary

                18.2 Key Findings

                18.3 Pharmaceutical Market

                                18.3.1 Key Findings

                                18.3.2 Production

                                18.3.3 Sales

                                18.3.4 Consumption pattern

                                18.3.5 Exports

                                18.3.6 Imports

                                18.3.7 Prices

                18.4 Medical Equipments Market

                                18.4.1 Key Findings

                                18.4.2 Production

                                18.4.3 Sales

                                18.4.4 Consumption pattern

                                18.4.5 Exports

                                18.4.6 Imports

                                18.4.7 Prices

                18.5 Healthcare IT Market

                                18.5.1 Key Findings

                                18.5.2 Production

                                18.5.3 Sales

                                18.5.4 Consumption pattern

                                18.5.5 Exports

                                18.5.6 Imports

                                18.5.7 Prices

                18.6 Major Companies

                18.7 Prices

                18.8 Market demand to 2020.

19. Infrastructure Market

                19.1 Summary

                19.2 Key Findings

                19.3 Sales

                19.4 Consumption pattern

                19.5 Exports

                19.6 Imports

                19.7 Prices

                19.8 Major Companies

                19.9 Commercial Construction

                                19.9.1 Statistics

                                19.9.2 Key Findings

                                19.9.3 Major Companies

                                19.9.4 Projects

                                19.9.5 Upcoming Projects

                19.10 Industrial Construction

                                19.10.1 Statistics

                                19.10.2 Key Findings

                                19.10.3 Major Companies

                                19.10.4 Projects

                                19.10.5 Upcoming Projects

                19.11 Infrastructure Construction

                                19.11.1 Statistics

                                19.11.2 Key Findings

                                19.11.3 Major Companies

                                19.11.4 Projects

                                19.11.5 Upcoming Projects

                19.12 Institutional Construction

                                19.12.1 Statistics

                                19.12.2 Key Findings

                                19.12.3 Major Companies

                                19.12.4 Projects

                                19.12.5 Upcoming Projects

                19.13 Residential Construction

                                19.13.1 Statistics

                                19.13.2 Key Findings

                                19.13.3 Major Companies

                                19.13.4 Projects

                                19.13.5 Upcoming Projects

                19.14 Market demand to 2020

20. Retail Market

                20.1 Summary

                20.2 Food Products

                                20.2.1 Key Findings

                                20.2.2 Sales

                                20.2.3 Consumption pattern

                                20.2.4 Exports

                                20.2.5 Imports

                                20.2.6 Prices

                20.3 Non-food Products

                                20.3.1 Key Findings

                                20.3.2 Sales

                                20.3.3 Consumption pattern

                                20.3.4 Exports

                                20.3.5 Imports

                                20.3.6 Prices

                20.4 Major Companies

                20.5 Prices

                20.6 Market demand to 2020.

21. Tourism Market

                21.1 Summary

                21.2 Key Findings

                21.3 Tourists (Country Wise)

                21.4 Major Locations

                21.5 Major Companies

                21.6 Market demand to 2020.

22. Banking and Finance Market

                22.1 Summary

                22.2 Key Findings

                22.3 Banking System

                                22.3.1 Key Findings

                                22.3.2 Government Regulations

                                22.3.3 Banking Sector Performance

                                22.3.4 Index Performance

                                22.3.5 Major Banks

                                22.3.6 Net Demand and Time Liability (NDTL)

                                22.3.7 Non Performance Assets (NPA) Trends

                                22.3.8 Priority Sector Lending Trends

                22.4 Financial System

                                22.4.1 Stock Market

                                                22.4.1.1 Key Findings

                                                22.4.1.2 Major Players

                                                22.4.1.3 Major Companies

                                                22.4.1.4 Government Regulations

                                                22.4.1.5 Index and Its Performance

                                                22.4.1.6 Market Volatility

                                                22.4.1.7 Foreign Investment

                                22.4.2 Commodity Market

                                                22.4.2.1 Key Findings

                                                22.4.2.2 Major Commodities

                                                22.4.2.3 Major Companies

                                                22.4.2.4 Government Regulations

                                                22.4.2.5 Market Volatility

                                                22.4.2.6 Foreign Investment

                                22.4.3 Mutual Funds

                                                22.4.3.1 Key Findings

                                                22.4.3.2 Major Commodities

                                                22.4.3.3 Major Trends

                                22.4.4 Insurance

                                                22.4.4.1 Key Findings

                                                22.4.4.2 Major Commodities

                                                22.4.4.3 Major Trends

                                22.4.5 Market demand to 2020.

23. BioFuel Market

                23.1 Summary

                23.2 Key Findings

                23.3 First Generation Fuels

                23.4 Second Generation Fuels

                                23.4.1 Key Findings

                                23.4.2 Sales

                                23.4.3 Consumption pattern

                                23.4.4 Exports

                                23.4.5 Imports

                                23.4.6 Prices

                                23.4.7 Market demand to 2020.

                23.5 Third Generation Fuels (Bio Diesel)

                                23.5.1 Key Findings

                                23.5.2 Sales

                                23.5.3 Consumption pattern

                                23.5.4 Exports

                                23.5.5 Imports

                                23.5.6 Prices

                                23.5.7 Market demand to 2020.

24. Competitive Landscape

                24.1 Existing Companies

                24.2 Upcoming Companies and Projects

25. List of Figures

26. List of Tables

27. Abbreviations

28. Works Cited

29. DISCLAIMER

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