HIGH IMPACT IN 2016: Aug.: Rio Olympics New Economic Reality ÁBACO BBB #11 Sept.: Rio Paralympics and Policies Create Brazil Business Bulletin Bienal Art Exposition Major Market Entry Nov.: SP Fashion Week Opportunities Dec.: St. Sylvester Race
POST-IMPEACHMENT, MAJOR REFORMS FOR THE BRAZILIAN ECONOMY
Extensive reforms are vital to balance federal budget and resume growth. The more conservative new government of interim president Michel Temer already took first steps for an economic turnaround:
Named as Finance Minister Henrique Meirelles, conservative ex-CEO of Bank of Boston, Banco Central. Meirelles in turn chose noted apolitical pros to preside Banco Central and BNDES Development Bank. Temer mounted his cabinet with legislators noted for ability to gain consensus in the congress. To cut expenses, reduced bloated ministries from 32 to 23 and vowed to oust 4000 political appointees. Signaled accelerated privatization of state properties such as airports, highways. Revealed plans to get government out of businesses, favoring private enterprise. Reversed foreign policy focus, “unfriending” populist regimes and seeking favor with main world powers. Same day impeachment of Dilma Rousseff was finalized, flew to China for G20 and trade negotiations.
Temer had tacit endorsement of the Senate’s 75% that voted to impeach Dilma Rousseff (Workers Party).
Brazil #4 in Diabetes Rio Olympics in Numbers
15m sufferers: Brazil trails only China, Spectators worldwide: 5,000,000,000 USA, and India. Since 2003 toll surged Tourists in Rio de Janeiro: 1,170,000 34%; 500 cases appear daily. Foreign tourists: 410,000 with largest 5m diabetics suffer complications groups from USA, Argentina, Germany and/or severe consequences: Journalists present in Rio: 26,000 blindness, amputation, kidneys Hotel occupation: 94% failure, heart attacks and strokes. New world records: 27
Inadequate diet is main cause: 57% New Olympic records: 91 of Brazilians overweight, 21% obese. Cases of Zika: 0 Consume over twice recommended Notorious Zika virus had worried daily sodium intake (>12g x 5g) some Rio Olympics participants. NOT A SINGLE CASE WAS REPORTED. Brazilians pay on average World Health Organization (WHO) R$ 610,24 monthly for had declared Zika outbreak a global their health-care plan. emergency, but its director denied This cost increases up to virus would affect travel or prevent a 450%,depending on age. successful Olympics in Brazil during the dry late-winter season.
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ABACO Marketing Research - Av. Paulista 1499 -13th floor - 01311-200 - São Paulo, Brasil - (+55-11) 3262-3300 [email protected] 1 BBB#11 ÁBACO’S BRAZIL BUSINESS BULLETIN Since 1975
São Paulo in Perspective, 2016 “Sampa” is also the Largest City in the “Western World”, Outside Asia and Africa São Paulo is the Largest City in Brazil, Largest in All the Americas, Largest in the Southern Hemisphere, and its Combined Statistical Area (CSA) is now the 3rd largest in the World.
12 São Paulo Capital (million inhabitants) 21 São Paulo Metro Area
27 São Paulo Combined Statistical Area “urban sprawl” 45 São Paulo State 206 million inhabitants, Brazil 2016
Of Brazil’s 5570 municipalities, 17 have 1m+ inhabitants. Total population grows 0.8% annually.
Brazilian citizens can vote upon reaching age 16. Voting is obligatory after age 18. With 28 parties dueling for space in October’s municipal elections, so soon after the impeachment of Workers Party President Dilma Rousseff, this calls for heavy thinking.
Almost 9m HIGHER EDUCATION, HIGHER EXPECTATIONS Men Voters in São They rapidly become more sophisticated: Each year 46% Women Paulo Capital the proportion of college educated voters rises 1%. 54% They demand and become more qualified candidates.
60 + 20% University 17% 50-59 16% High School 45% 40-49 19% 30% 30-39 22% Elementary School 6% 20-29 19% Can read and write 16-19 4% Illiterate 2%
ABACO Marketing Research - Av. Paulista 1499 -13th floor - 01311-200 - São Paulo, Brasil - (+55-11) 3262-3300 [email protected] 2 BBB#11 ÁBACO’S BRAZIL BUSINESS BULLETIN Since 1975 Legacy of the Spectacle
The Rio Olympic Games leave a sporting legacy in the Barra da Tijuca district, with 14 new world-class sports venues built, mostly from scratch, to serve both elite and grassroots athletes. Rio’s also gains a striking leap in access to high capacity public transport, up from 18% of the population in 2009 to 65% of all Cariocas in 2016.
Marina da Glória hosted sailing competitions on Guanabara Bay and open ocean. The venue was expanded, updated with new leisure facilities, and integrated with neighboring Flamengo Park. The canoe slalom venue retained its original purpose and also became a public swimming area for the local population.
Rio’s Olympic Park now features a 12,000 capacity waterfront lawn where sports fans can watch games on giant screens. The Rio 2016 golf venue becomes Rio’s first public golf course, creating a long-term legacy for the game in Brazil. Six venues in the Olympic Park form the nucleus of Brazil’s first Olympic Training Center, for athletes from Brazil and around South America.
The Games’ economic legacy extends far beyond The 31 apartment towers built to house sport venues. During preparation, other areas of international delegations inaugurate a new Rio received billions in direct investment: upscale residential neighborhood of Rio. Revitalization of the historic, dilapidated port area as Porto Maravilha, a leisure and cultural magnet reopening the city center to the bay. The tourism industry benefits from new hotels and convention facilities. Rio’s population gained training and experience in numerous fields, including 1,000,000 English lessons by the Rio 2016 Organizing Committee to staff, volunteers and other stakeholders.
ABACO Marketing Research - Av. Paulista 1499 -13th floor - 01311-200 - São Paulo, Brasil - (+55-11) 3262-3300 [email protected] 3 BBB#11 ÁBACO’S BRAZIL BUSINESS BULLETIN Since 1975 Bradesco Wins Approval Jaguar Land Rover’s First for $5.2b HSBC Purchase Fully Owned Overseas Plant
Brazil antitrust regulators approved Bradesco‘s JLR divulged its £240m ($350m) venture acquisition of the local unit of HSBC Holdings, in 2013, after a decade of steady growth. requiring that the buyer refrains from additional Expected 2016 new car sales are nearly purchases for 30 months. half the 2012 peak of 3.8m, but JLR The decision narrows Bradesco’s market-share claims 11% growth. gap with the top three banks. Itau Unibanco "The premium sector has more or less Holding became Brazil’s largest non-state-owned held its ground, so share of total industry bank when Itaú bought Unibanco in 2009. has grown for premium and we've been Bradesco will total R$ 1.09 trillion in assets, still able to robustly hold our position," said behind Banco do Brasil, Caixa Economica JLR Brazil Director Julian Hetherington. Federal and Itau. Source: Reuters.com Source: Bloomberg
More “Churrasco” for USA Coffee for All Brazil formalizes a new fresh beef export Brazilian coffee export deal, attracting other new opportunities. led the world again in the last harvest year: Deals may follow with countries like Japan, South Korea and Canada, all with 35m sacks yielded the similar sanitary legislation as the USA. nation US$5.3b. This new arrangement is expected to Global warming is soon boost Brazil’s world market share from likely to shrink world 7% to 10%. coffee growing areas. Source: Metro.com.br Source: Destak.com
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