1. 13/09/2018
Presentation title

2. Brazil – A country of opportunities
Paulo Safady Simão
CBIC Chair
13/09/2018
Brazil – A country of opportunities

3. BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER
National and international representative of employer associations in the construction and real estate industry 3

4. 26 States and Federal District
BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER
UNIONS, EMPLOYER ASSOCIANTIONS AND CHAMBERS
62 Associations
26 States and Federal District
Highway Construction
Sanitation
Real Estate
Construction Segments 4

5. Brazil – A country of opportunities
GENERAL INFORMATION
BRAZIL
Brazil – A country of opportunities

6. RECENT GLOBAL FINANCIAL CRISIS
“The stability of the economy and of
the country’s democratic institutions as well as frank dialogue between government and civil society were decisive in successfully confronting the crisis”
A development strategy based on investment
and mass consumption (domestic market) was adopted; and ...
Monetary policy
Reserve requirement
Reduced interest rates
Foreign trade (reserves)
Fiscal policy
Reduced taxes on production
Investments in construction
são gerados prejuízos de bilhões
de dólares comprometendo o funcionamento do sistema financeiro privado.
Ocorre uma contração drástica e generalizada do potencial de crescimento nos mercados domésticos.
A confiança é comprometida pela fraqueza de fundamentos econômicos, tais como o equilíbrio das contas públicas, alia-se à incapacidade financeira e instrumental dos governos para intervir de
forma apropriada.

7. ECONOMIC OUTLOOK Economic stability;
Average growth of approximately 4.7% per year;
Growth driven by internal demand and by investments in infrastructure and housing;
Investments projected to grow by at least twice the rate of GDP in the coming 4 years;
Notwithstanding forecasts pointing to a renewed global downturn, domestic demand remains robust, international reserves and reserve requirements are higher than in 2008, and the fiscal situation is stronger.
Source: Ministry of Finance, Brazilian Central Bank (BACEN) and CBIC Database 7

8. GDP GROWTH RATES
In the period , the consolidation of investments (driven by construction) and increased domestic demand is expected to spur average annual economic growth of 4,7%.
Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

9. MIDDLE CLASS ACCOUNTS FOR MORE THAN HALF OF BRAZILIAN POPULATION
DISTRIBUTION OF ECONOMIC CLASSES IN BRAZIL (% POPULATION)
Enhanced income distribution has added 29 million to middle class (Class C).
Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00; Class C: R$ 1, – R$ 4,800.00; Class D: R$ – R$ 1,115.00; Class E: up to R$
Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared and estimated by the Ministry of Finance

10. A MIDDLE CLASS NATION
COMPOSITION OF BRAZILIAN SOCIAL CLASSES (MILLIONS OF PEOPLE)
Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of Finance

11. BRAZILIAN ECONOMY: FORECAST
* IMF Forecast
Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

12. Brazil – A country of opportunities
GENERAL INFORMATION
CONSTRUCTION
Brazil – A country of opportunities

13. THE CONSTRUCTION INDUSTRY IN CONTEXT
Represents approximately 20% of national industrial output;
More than 2.8 million formal workers;
More than 170,000 licensed companies;
Accounts for nearly 41% of fixed investments in Brazil.
Source and Preparation: CBIC Database.

14. GROWTH OF CONSTRUCTION INDUSTRY LABOR FORCE
Para cada marco da evolução do emprego falar da participação da CBIC (o que ela fez).
Citar a importância do apoio da base, elogio ao SINDUSCON-Maringá e ao seu presidente: Sr. Marcos Mauro.
Source: Annual Registry of Social Information/General Registry of Employed and Unemployed Persons (RAIS/CAGED), Ministry of Labor and Employment. Preparation: CBIC Database.

15. Brazil – A country of opportunities
REAL ESTATE MARKET
Brazil – A country of opportunities

16. REAL ESTATE MARKET GROWTH IN REAL ESTATE
CREDIT 2002 – 2011 (financing volume)
REAL ESTATE MARKET
Note: New and used units
Source: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

17. HIGH QUALITY REAL ESTATE CREDIT Mortgage Guaranty + Fiduciary Lien
Brazilian Savings and Loan System (SBPE) – Agreements with more than 3 outstanding installments signed after 1998
Mortgage Guaranty + Fiduciary Lien
Fiduciary Lien
Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP)

18. REAL ESTATE FINANCING AS A PERCENTAGE OF GDP
Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP).
Preparation: CBIC Database

19. CREDIT TRANSACTIONS BY FINANCIAL SYSTEM IN 2009
(AT THE HEIGHT OF THE CRISIS)
Steering of funds at low cost was decisive for maintaining credit levels at the height of the global crisis.
Source: Brazilian Central Bank (BACEN). Preparation: CBIC Database 19

20. Brazil – A country of opportunities
MY HOME, MY LIFE PROGRAM
(PMCMV)
Brazil – A country of opportunities 20

21. MY HOME, MY LIFE PROGRAM (PMCMV)
Disbursement of MCMV Program (R$ billion)
*Caixa Econômica Federal estimate.
Note: Exchange rate: R$ = US$ 0.56
Source: Caixa Econômica Federal. Preparation: Ministry of Finance. 21

22. ADDITIONAL GROWTH INDICATORS ... 5.81 23.49 Cumulative shortage - 2009
HOUSING NEEDS
(millions of units)
5.81
Cumulative shortage
23.49
Source: Civil Construction Industry Trade Union of São Paulo (SINDUSCON-SP), São Paulo State Federation of Industry (FIESP), Getúlio Vargas Foundation (FGV). CBIC Database.

23. Brazil – A country of opportunities
INFRASTRUCTURE
Brazil – A country of opportunities

24. ?
WHAT IS THE PAC
It is a program of consistent investments aimed at meeting the challenges of infrastructure.
GROWTH ACCELERATION
PROGRAM
SECOND PHASE
Source: PAC2 Report.

25. GROWTH ACCELERATION
PROGRAM – SECOND PHASE
Source: PAC2 Report.

26. GROWTH ACCELERATION PROGRAM
Organizes government measures and supports private sector action over a 4 year period.
Develops an optimal environment to enable the country to grow at a faster rate through the execution of infrastructure studies, projects, and works.
Creates the conditions for addressing the obstacles to sustainable development. 26

27. Brazil – A country of opportunities
2014 FIFA WORLD CUP
Stadiums
Urban
Mobility
Ports and airports
Environment
sanitation
Telecommunications
Brazil – A country of opportunities

28. INVESTMENTS FOR THE 2014 FIFA WORLD CUP
(R$ billion)
Note: exchange rate: R$ = US$ 0.56
Source and Preparation: Ministry of Finance. 28

29. Brazil – A country of opportunities
2016 OLYMPIC GAMES
Environment
sanitation
Urban
Mobility
Stadiums
and arenas
Ports and airports
Telecommunications
Brazil – A country of opportunities

30. PORT INVESTMENTS
Nine major projects of ports in the world (US$ billion)
Note: The expansion of the Port of Santos and the construction of the Açu Port in Rio de Janeiro, the largest venture investiment in port in Latin America.
Source: CG-LA ExameYearbook Preparation: Ministry of Finance 30

31. INVESTMENT PROGRAM IN TRANSPORTATION
Sixteen major transport projects in the world (US$ billion)
Source and Preparation: Ministry of Finance. 31

32. INVESTMENT PROGRAM IN TRANSPORTATION
High-speed train linking the cities of Rio de Janeiro, São Paulo and Campinas
(R$ billion and % of total)
Note: Exchange rate: R$ = US$ 0.56
Source: STN/Ministry of Finance. Preparation: Ministry of Finance 32

33. INVESTMENT PROGRAM IN TRANSPORTATION
Airport concession: Planned investments (R$ billion)
Notes:
Guarulhos: Brazilian and South African Society – a composite of an English investment fund
Viracopos: Brazilian Society with one French partner
Brasilia: Brazilian Society with one Argentine partner
Exchange rate: R$ = US$ 0.56
Source: STN/Ministry of Finance. Preparation: Ministry of Finance 33

34. Brazil – A country of opportunities
ENERGY
Subsalt;
Clean Energy;
Hydroelectric Plan;
Oil and Gas.
Brazil – A country of opportunities

35. INVESTMENTS IN THE OIL AND GAS SECTOR
Ten major projects in the Oil and Gas sectors in the world (US$ billlion)
Note: If plus ship-oil platforms whith building platforms the total value is US$ 40 billion.
Source and Preparation: Ministry of Finance. 35

36. INVESTMENTS IN THE ELETRICITY SECTOR
Fifteen major projects in the Eletricity Sector in the world (US$ billlion)
Source: CG-LA ExameYearbook Preparation: Ministry of Finance 36

37. INVESTMENT FOR THE COUNTRY´S DEVELOPMENT AND GROWTH
Note: Updated in January Preparation: Ministry of Finance. 37

38. BUSINESS OPPORTUNITIES
OTHERS
BUSINESS OPPORTUNITIES
Investment in tourism;
Commercial buildings – shopping malls, warehouses for logistics;
Tecnological Innovation Program 38 38

39. presidencia@cbic.org.br Phone: +55(61) 3327-1013
Phone: +55(61)
Fax: +55(61)
BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER
Paulo Safady Simão CBIC CHAIR

40. 13/09/2018
Presentation title