Brazilian-based entrepreneurs like Eucatex CEO, Flavio Maluf are optimistic about improvement in the country’s economic recovery. In fact, with improved exports, Maluf believes recovery may be a bit higher than what analysts have predicted. “A big part of Brazil’s good performance is foreign sales,” says Maluf.
With a good performance of exports, economists are beginning to predict a more vigorous recovery of the Brazilian economy, beginning in early 2017. Analysts expect growth of between 1.2 and 2 percent for next year. Good external performance of various sectors of the industry, such as food, beverages, textiles, machinery, leather, footwear, pulp and paper, and wood can drive economic recovery. “The textile sector saw yarn exports jump 146 percent in the first half of the year, and the auto industry registered a 14.2 percent increase in sales abroad,” Flavio Maluf pointed out.
With the average Brazilian Real around $3.60 in the first half of the year, many sectors have already gained ground in exports. The Ministry of Agriculture, for example, reported that sales of agricultural business amounted to US $45 billion, up 4 percent over the same period in 2015. While everything looks positive, Maluf reminds us, “The country needs to move a few more steps before we decree that the worst is behind us.” Why does he say this? Well, the steps have been gradual, and the walk is not exactly perfect, and there are advances and setbacks along the way. Still, it appears that Brazil is more than halfway down the road.
In July, the industry’s confidence index, measured by the FGV, rose for the fifth consecutive month and reached its highest level since June 2014. The FGV captures main indicators of entrepreneurs willingness to invest, and it is with investment that Brazil can increase production and employment. The indicators have shown that confidence of entrepreneurs have been the starting point for the improvement of the economy, and outlook for Brazil is all positive.
Under the guidance of Flavio Maluf, Brazilian-based Eucatex has continued to enjoy rewards and success. Starting out as a furniture company, Eucatex has evolved into paint, panels, tiles, varnishes and home good furnishings. Known as one of the first eco-friendly companies in Brazil, Maluf has built the company into a multi-million dollar workhorse, exporting products to nearly 40 different countries. Today, Flavio Maluf may be one of the very reasons Brazil is pulling out of their crisis.