Brazilian Economy Shows Signs Of Recovery In The Textile And Confection Industry
Flavio Maluf is a Brazilian businessman and holds a degree in Mechanical Engineering from Fundação Armando Álvares Penteado (FAAP) in São Paulo, Brazil as also studied Business Administration at New York University. Flavio Maluf takes interest in economy and writes about news articles that are important for Brazil and the world. In this article, he focuses on the textile industry and its recovery.
The Brazilian economic crisis has reached many fields of the market. The textile and confection industries have faced two years of recession, but 2017 started with good news. According to the Brazilian Textile and Confection Industry Association (Abit), when in January, sales rose 1% in clothing sales against the 6.7% drop in 2016. Flavio Maluf, the president of Grupo Eucatex, presents this data optimistically. The textile production also rose 1% against a drop of 5,3% in 2016. He also expects that the revenue for the textile and confection industry for 2017 will be around R$135 billion (U$40,2 billion), which would be a 4.6% increase in relationship to 2016 results. The clothing wholesale market should grow 2%. Importation to Brazil should see an increase of 10% (1.21 million tons) and 5% in exports (209 thousand tons). In relationship to the sector creating jobs, estimates point to the creation of 10 thousand jobs in 2017. The sector should also attract R$1,75 million (U$520 million) in machinery and equipment.
Flavio Maluf explains that the reasons that justify the slow recovery of the Brazilian economy are the reduction of the interest rate, inflation near to the middle of the goal, some improvement in the credit market as well as trust in companies and consumers.
According to Abit, 2017 will be full of uncertainties, but the industry is ready to rebound in the textile and confection area it reacts quickly to positive changes in the economy. Recent tax breaks, according to Flavio Maluf, should stimulate investments and consumption, which should help the Brazilian economy recover.
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