Guest Blog: Brazil Construction Sector 2016/2017
By Esmerelda del Olmo - EMIS Senior Marketing Executive
An Abstract from the report:
The construction sector, one of the key drivers of economic growth in the past decade, is undergoing a profound restructuring triggered by structural transformation of the Brazilian economy after the end of the commodities boom, low government spending and the ongoing corruption investigation at state-run oil company Petrobras, dubbed “Car Wash”. Since 2014, the sector has been in a recession due to the ailing economy, high inflation and restricted credit supply, which has led to postponed projects and mounting financial, liquidity and reputational problems for domestic construction companies. However, the resolution of political paralysis at the end of August 2016, coupled with the pledge of the new President Michel Temer to improve the business environment and restore investor confidence, are likely to lay the foundations for a recovery of the sector.