Resumption of the growth and structural reforms may open new opportunities in the Brazilian Market

Showing a few signs of an economic recovery, Brazil is beginning a new cycle of growth, offering investment opportunities and creating a business-friendly environment. Measures needed to ensure sustainable economic stability have been taken and as a consequence some indexes have begun to improve in recent months.

According to recent data from the Ministry of Finance, after two years of recession, GDP in the first quarter was 1.0% QoQ (quarter over quarter). Although projected 2017 GDP (average) is 0.5%, marginal GDP is higher: 4th quarter 2017 vs. 4th quarter 2016 = 2.7%, and 4th quarter 2017 vs. 3rd quarter 2017 = 3.2% (annualized). The recovery of growth begins in 2017 and develops in 2018. For the next year, the projection of GDP is at 2.5%.

The unemployment rate also shows signs of improvement and, after almost three years starts showing signs of reduction. Another important factor, the fall in the inflation rate has led to an increase in purchasing power and higher consumption. The cumulative rate in twelve months declined to 3.52%, approaching the floor inflation target.

The Brazilian Central Bank has also taken measures to decrease the interest rate, currently at 10.15%. Estimates indicate that the rate should reach 9.0% per year at the end of 2017. The lower cost of capital will be paramount in the recovery process of the activity. The gradual increase in household consumption will increase demand in companies, causing an impact in the recovery of investment in machinery and equipment from next year on.

Important sectors of the economy already show recovery

Some economic sectors are already starting to show more positive data. In the first half of 2017 retail sales of building materials grew by 4% over 2016. Even slow, the industry reaction indicates that retail is recovering as a consequence of credit supply increase. According to data from the National Association of Construction Material Traders (ANAMACO), the estimate is that by the end of 2017 the sector may show a 5% growth over 2016.

Another segment with better indexes is the agricultural sector. According to the Ministry of Agriculture, Livestock and Food Supply (MAPA), the gross value of production for 2017 is estimated at R$ 536 billion, an amount that represents an increase of 4.3% over last year. The most relevant factor in this result is the productivity gain, with an average increase of 22.3%.

Opportunities in business events 

In this scenario of economic recovery, Messe Düsseldorf carries out, with the organization and promotion of Cipa Fiera Milano and in partnership with Tarcom Promoções, the 3rd edition of the wire South America| International Wire and Cable Fair, the South-American version of the world’s largest cable and wire fair, wire Düsseldorf. It takes place between October 3rd and October 05th, 2017, at São Paulo Expo, in São Paulo, and is an important promotion tool for companies in the sector to overcome the crisis and re-heat the market.

This edition presents the latest technologies, products and services in the manufacture and processing of wires and cables. Among several segments, the following stand out: steel cable, wire, machines and equipment (spindles, ropes, welding and others), rebar and industrial wires.

“The WSA is the main fair for the wire and cable industry in Latin America, where visitors have the opportunity to expand partnerships, meet new suppliers and be introduced to the main technologies and innovations available in the world”, declared   Executive Daniel Ryfisch, Director of International Portfolio for wires and tubes at Messe Düsseldorf, observing that traditional companies and market leaders in the sector have already confirmed their participation, among them Polyexcel, Niehoff Herborn, Reichenbach, Supicom, and Wafios.

Simultaneously with the wire South America is the 9th edition of Tubotech | International Fair of Pipes, Valves, Pumps, Connections and Components including in addition to pipes, raw materials, fittings and accessories, valves, pumps and motor pumps, machines for production, cutting and shaping, finishing, tools, and measuring and control auxiliary materials. In 2017 the joint events should gather more than 550 exhibitors and attract 15 thousand visiting professionals.

* Sources: Ministry of Finance, Brazilian Central, National Association of Construction Material Traders (ANAMACO) and Secretariat of Agricultural Policy (SPA) of the Ministry of Agriculture, Livestock and Supply (Map).

More information on the website: www.wiresa.com.br

Service

3rd wire South America| International Wire and Cable Fair

Date: October 3rd to 05th, from 11 a.m. to 19 p.m.
Venue:
São Paulo Expo Exhibition & Convention Center
Address: Rodovia dos Imigrantes, Km 1,5 – São Paulo – SP – Brasil
Free transportation: Rua Nelson Fernandes, 450 –  Access by Jabaquara Bus Terminal
* Free event for industry professionals

About Cipa Fiera Milano

Cipa Fiera Milano specializes in trade fairs and technical publications and aims to bring together organizations, create business opportunities and relationships via major trade fairs and publication of specific magazines in Latin America. Founded in 1977, it was purchased by Fiera Milano in 2011, becoming the Brazilian branch of one of the world’s leading trade fair and congress companies.

Fiera Milano in the world

Located in Europe – Italy, the Fiera Milano is a market leader in in the segment of trade fairs and congresses, both in number of visitors and exhibitors, as well as in the excellence of the exhibitions. With branches all over the world, Fiera Milano has a portfolio that stands out from other promoters of fairs in terms of the range of economic sectors represented and quality of events.

Each year, its exhibitions attract over 30,000 exhibitors and more than 5 million visitors. Today the Fiera Milano operates a joint venture with Hannover Messe, in China and in India, in addition to its own branches in Brazil, South Africa, China, and India.

Cipa Fiera Milano Press Office
RM Press | Comunicação Estratégica
Claudia Maciel
+55 11 2950-4820
claudia.maciel@rmpress.com.br

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