Brazil’s trailer market: Work in progress

From the March 2012 issue.

Ranked as the world’s seventh* largest economy, Brazil has become the place to source new business in Latin America.

Ranked as the world’s seventh* largest economy, Brazil has become the place to source new business in Latin America. But the promised economic juggernaut is struggling to develop an up-to-date commercial road transport sector, as infrastructure development continues to lag behind.

Joining Russia, India and China as the fourth BRIC country, Brazil is more than just a lucrative investment option – it is one of the world’s most buzzing marketplaces and South America’s most promising logistics environment.

Compared to the top-three economies poised for progression in 2012 – Niger, Iraq and Angola are all set to clock in double-digit growth – Brazil may not stand for unlimited growth anymore, but it still is a burgeoning marketplace.

Until 2010, Brazil was dancing to the beat of rapidly increasing commercial growth, anchored by a strong commodities export market that totaled US$199.7 billion by the end of the decade**. Fuelled by the commodities boom, a growing middle class and important mineral wealth, Brazil’s economy hummed along with a 7.5 per cent growth rate.

Today, the tide has changed. The economic downward trend has not failed to leave a mark on the domestic economy and analysts are now pegging gross domestic product growth at 3 to 3.5 per cent. Fellow BRIC member, China, will achieve some eight per cent***.

But, there still is a surge of optimism that Brazil will bounce back, and the government is already taking action to stimulate and strengthen the economy – including a mix of tax cuts, interest rate reductions and more relaxed bank lending requirements.

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