Well-positioned to supply emerging-market meat demand
After over a year in office, President Dilma has demonstrated her independence from her political mentor former President Luiz Inacio Lula da Silva. The most marked change has been in monetary policy, with Dilma and Central Bank President Alexandre Tombini opting for a model that favours economic growth over controlling inflation. Against a backdrop of continued global uncertainty, we expect the Dilma administration will strive to maintain economic growth by boosting investment in infrastructure and consumer spending.
These policies will have significant implications for investors in Brazil and it is in this context that we will continue to focus our research on the challenges that the country will face over the next three years as it prepares to host the 2014 FIFA World Cup. In light of the recent airport concession auction, we will be revisiting topics including road, rail and port concessions.
We will also continue our extensive coverage of Brazil’s growing consumer class, evaluating those related sectors that are likely to see the strongest growth during Dilma’s second term in office. In addition to consumer lending and retail, we will also focus on the expansion of the service sector, a segment of the economy with substantial potential for long-term growth.
We will continue to closely monitor the opaque relationship between the government and Brazilian state-owned oil company Petrobras. We will further pursue our in-depth analysis of oil and gas legislation and the implications of the new regulatory framework for local oil and gas service suppliers, independent oil companies and Petrobras.
Finally, we will maintain our extensive coverage of Brazil’s agricultural sector, looking at the implications of long-term growth drivers, particularly increased demand from developing markets in Asia for imported food. In addition to production of agricultural commodities, our analysis will also examine the logistical bottlenecks that impede more rapid development of Brazil’s agriculture sector.
