Electronics industry in Brazil:
enormous potential in the most important free-market economy in South America
São Paulo is the
economic centre of Brazil.
Almost 50 % of the Brazilian production is generated there, although the
population accounts for a share of only 11 %. Almost three-quarters of the
high-tech companies are concentrated in São Paulo. The city is also the leading centre for the
production of capital goods and consumer durables.
Enormous potentialBrazil was one of the first emerging markets to begin
a recovery after the worldwide crisis. Consumer and investor confidence
revived and GDP growth returned to positive in the second quarter 2009.
The Central Bank expects growth of 5% for 2010. The electrical
engineering sector is strategically important for the
development of the Brazilian economy overall. By 2020 the aim is to
quadruple real net output in electronic components and raise the GDP
contribution of the electrical engineering industry from 4.3% to 7%.
Nevertheless market observers are expecting demand for imports to
remain high, particularly for high-end products. Turnover in the
electrical engineering industry rose by an average of 9% in 2007 and
2008. Imports rose dramatically and
nowaccount for 36%of domestic consumption and almost 18.5% of all Brazilian imports.
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