Brazil Freight Transport Report Q1 2016
BMI View: We expect steady if lacklustre growth in Brazil's freight sector in the coming years, with tepidincreases in mining and agricultural output ensuring demand remains elevated. We caution that a morerobust expansion will be prevented by a slowdown in the consumer sector, weak global commodities and alacklustre external picture. As a result, we expect the road and rail sector will display the largest gains.
Brazil's economy will remain in recession in 2016 after dipping below zero in 2015, for the first time inseven years. We forecast real GDP to contract by -0.8% in 2016 following a contraction of -2.7% in 2015.Major headwinds to private consumption and a fixed investment via a slow resolution of the corruptionscandal at national oil company Petrobras will be the primary driver of the slowdown, with unemploymentreaching 10-year highs and the country's investment attractiveness significantly deteriorated.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook