Predicting Car Sales in Brazil in 2015

Business Summary

Brazil is the fifth largest nation in the world, with an area of 8. 515 km2, and a populace of more than 200 million. Brazil can be described as country with large all-natural resources and a large labor pool. They have managed to exploit these to become South America's leading monetary power and regional leader, and major in the region to begin an economic recovery. Remarkably unequal salary distribution and crime continue to be pressing concerns. Over 25% of human population is still under the poverty limit. Brazil has its job cut out for itself wherever it has to be spots to number both the 2014 World Sports Cup plus the 2016 Olympics (Focus2move website). We get started this record by providing an index of the economical activities occurring in Brazil that are very likely to affect the future. Then, the report can be divided into three parts; the first featuring the macroeconomic factors that will assist forecast the near future demand for voyager automobiles in the local market, the 2nd highlighting the macro-economic elements that will help prediction the future demand for import of passenger vehicles and the last part showcasing the macro-economic factors that can help forecast the near future demand for export of traveler automobiles. Brazil was not immune system to the global financial crisis of 2008-2009, as its genuine GDP lowered slightly by simply 0. 3% in 2009. Yet , the economy quickly recovered this year and 2011, with actual GDP developing by 7. 5% and 2 . 7%, respectively. This performance was driven by simply high commodity prices, which usually boosted food and nutrient exports, and a stable exchange rate with the domestic money.

GDP Development Rate (%) Brazil

GROSS DOMESTIC PRODUCT Growth Level (%) eight 6 4 2 0


*2013 till Feb 2013 Data bank: International Financial Fund

Brazil has a large and beautifully shaped agricultural, exploration, manufacturing, and service sector. This helps Brazil's economy surpass that of all other South American countries, and Brazil is expanding it is presence in world markets. However , the real economic activity of Brazil relies on Low cost and Full Trade; Restore of Automobiles, Motorcycles and private and Home Goods, because the Major Value Added (GVA) of this sector represented 18. 6% of the total or perhaps R$655 billion dollars (US$392 billion) in 2011. The large Brazilian household market is the driver of these actions. Corruption, inequality, lack of human rights and a high low income rate will be Brazil's primary problems. This year, Brazil's unemployment rate just visited its lowest levels and stood in 6. 0%, down by 10. 0% in 2006. Regardless of this, unemployment continued to be high especially in the case of young people (12. 7%) and ladies (8. 1%) (Euromonitor Foreign, 2013).

Unemployment Rate (%) Brazil

14 12 twelve 8 6th 4 two 0 the year 2003 2004 2006 2006 2007 2008 2009 2010 2011 2012 Yr

Data Source: Euromonitor International, 2013 Over the last ten years, Brazil has substantially increased its production of energy, particularly, ethanol and oil. Recent discoveries of large offshore, pre-salt oil debris can potentially enhance Brazil as one of the major oil manufacturers in the world. The government is also strongly supporting the introduction of renewable options (Euromonitor Foreign, 2013).

Joblessness rate (%)

Domestic Demand for Passenger Automobiles

Factors that will influence require would consist of GDP, GNI per household, growth charge, Industrial Creation, One of the requirements to predict demand of passenger cars in Brazil by using quantitative techniques just like regression is usually to find out if there is statistical value, i. at the. health in the statistics.

Thready Regression

GDP & With regard to Cars

We ran regression analysis to find out if there is a relation between GDP and Sales and if we can employ these numbers to prediction future product sales. With R-square of more than 92% including over 99% confidence level (i. e. < 1% p-value) we came to a bottom line that GROSS DOMESTIC PRODUCT does statistically impact revenue (demand). The Scattered plan below plots Sales around the Y-axis and GDP for the X...

Referrals: п‚· п‚· Brazil - focus2move. com. " Home - focus2move. com. And. p., n. d. World wide web. 18 Scar. 2013.. " Anfavea: Brazil auto product sales set record in 2011. " InfoSur Hoy. N. s., n. g. Web. 19 Mar. 2013.. Risk and Vulnerabilities: Brazil, Euromonitor International, March 2013. Risk and Vulnerabilities: USA, Euromonitor Intercontinental, March 2013. Neto, Sixth is v. M. (2010). An examination of barriers to expansion of Brazilian Car Industry Export products. Center intended for International Research. Risk and Vulnerabilities: Philippines, Euromonitor Worldwide, March 2013. Risk and Vulnerabilities: Cina, Euromonitor International, March 2013. Risk and Vulnerabilities: Holland, Euromonitor International, March 2013. Risk and Vulnerabilities: Spain, Euromonitor Intercontinental, March 2013.

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