Brazil Autos Report - Business Monitor International - Industry Reports

Brazil Autos Report

Brazil Autos Report - Business Monitor International - Industry Reports
Brazil Autos Report
Published Aug 06, 2016
41 pages — Published Aug 06, 2016
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Abstract:

Rising unemployment, high inflation, falling real incomes and high job insecurity will be the main factors dragging on consumer demand for passenger cars. Brazil s unemployment rate has risen to its highest point since ---- reaching an estimated --.- in the three months leading up to May ---- compared with -.- in -- months earlier, according to IGBE s Continuous National Household Survey. ...Rising unemployment, high inflation, falling real incomes and high job insecurity will be the main factors dragging on consumer demand for passenger cars. Brazil s unemployment rate has risen to its highest point since ---- reaching an estimated --.- in the three months leading up to May ---- compared with -.- in -- months earlier, according to IGBE s Continuous National Household Survey. The pace of job losses has been most severe over ---- but we expect only a slowdown over H--- with further job shedding to come. ...The combination of falling employment and rising inflation is eroding real incomes of consumers, which fell -.- y-o-y in May ----, as wages failed to keep pace with inflation. In turn, this will, drag on purchasing power and consumer willingness to spend on big-ticket items.

...We are revising down our forecasts for vehicle sales in ---- to a decline of --.- to -.---mn units, down from our previous forecast of -.- . After already collapsing by --.- in ----, vehicle sales declines in ---- will mark the fourth consecutive year of annual contractions in total sales, with volumes reaching their lowest point since ----, and well below the average annual volumes seen over the last five years of -.---mn units. ...We are revising down our forecasts for vehicle sales in ---- to a decline of --.- to -.---mn units, down from our previous forecast of -.- . After already collapsing by --.- in ----, vehicle sales declines in ---- will mark the fourth consecutive year of annual contractions in total sales, with volumes reaching their lowest point since ----, and well below the average annual volumes seen over the last five years of -.---mn units. Brazil s economy faces a toxic mix of political and structural economic challenges that are combining to create a very poor outlook for vehicle sales. ...Brazil s economy faces a toxic mix of political and structural economic challenges that are combining to create a very poor outlook for vehicle sales. Our Country Risk team believe Brazil s economy will remain in decline in ----, falling -.- , with limited opportunities for a meaningful recovery from ---- onwards, indicated by our forecasted - real GDP growth in ----.

...Brazil s macroeconomic weaknesses will still outweigh the mildly positive effects of more political certainty following ex-President Rousseff s impeachment and the appointment of Michel Temer as president. These macroeconomic weaknesses remain the same as those we have highlighted in earlier reports including high borrowing costs, rising unemployment, company bankruptcies, chronic underinvestment and an ongoing crisis in the country s heavy industry sectors will all keep vehicle sales volumes minimal in ---- and keep ---- s recovery very weak. ...

  
Source:
Document ID
1748-9784
Country
Industry
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Brazil Autos Report" Aug 06, 2016. Alacra Store. Dec 06, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Brazil-Autos-Report-2026-352>
  
APA:
Business Monitor International - Industry Reports. (2016). Brazil Autos Report Aug 06, 2016. New York, NY: Alacra Store. Retrieved Dec 06, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Brazil-Autos-Report-2026-352>
  
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