Brazil: better times ahead?

Published 08 June 2017

As economic and political uncertainty combine, Brazil’s short-term future looks somewhat shaky. However, longer-term prospects for Latin America’s biggest cement market remain positive. While the country’s cement producers are reining in capital expenditure plans, some capacity expansion continues, betting on better times ahead. By Lafis, Brazil & ICR Research, UK.

While the lack of a long-term infrastructure development plan remains a key issue in Brazil,

the need for infrastructure is expected to be a key driver in the country’s cement demand

With a downturn in the economy and short-term prospects not particularly favourable, Brazil’s outlook is uncertain. Moreover, following the removal from office of ex-President Dilma Rousseff, this uncertainty extends to the country’s political climate. This reduces the confidence of the business world and consumers in the country’s near-term future. A more cautious stance towards investment and buying has emerged. This has led to new infrastructure and property developments being under threat, which is expected to spill over into the domestic cement market, resulting in challenging times for the country’s cement industry.

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