Lower tax, income and foreign exchange support growth plans
Valor Econômico 02/06/2009
Lupo is hiring 300 people for the new plant in Araraquara (SP) to be opened until June. Silvio Santos Group's Cosméticos Jequiti & Hydrogen sold 20% more in January than it had foreseen and expects to close the year with an increase of 150% in its income. IRB Tatuzinho 3 Fazendas, owner of the Velho Barreiro brand, foresees a growth of 4% compared to last year. The information seems to have come from a news database from 2007 or 2008, when the Brazilian economy grew at a fast pace, but these are estimates for 2009. In the economy and industry context, as a whole, there are uncertainties as for how much the Brazilian economy will reduce its pace this year, after having grown only 3.1% in 2008. There are companies, however, which are still operating with a perspective of growth compared to 2008 ‑ and part of them are hiring. Among the reasons are the foreign exchange rate (which improves the competitiveness and reduces competition from the imported products), the smaller fall in the income of the population in C and D classes, lower inflation of foods and some of the measures of incentive adopted (or announced) by the Federal Government, specially in civil construction. The Brazilian Association of the Building Material Industry (Abramat) foresees grow of 5 to 6% in sales for 2009; a result which, if reached, will already represent a relevant slowdown compared to 2008, when income increased 33%. "The crisis is affecting the sector, but the industries still keep the optimism", affirmed Melvin Fox, president of Abramat. He mentioned a survey the entity made in January in which 68% of the companies surveyed said they were optimistic regarding the effects of the measures of the government on the sector.