Cement Energy Environment

35 Historical and forecast data of the Brazilian economy GDP growth (%) Consumer in ation - IPCA (%) Wholesale in ation - IGP-M (%) Selic Rate (%, eop) Exchange Rate (BRL/USD, eop) Industrial Production (%) Retail Sales (%) Job Creation (in thousands) Unemployment Rate (% of labor force, avg) Outstanding Credit Growth (%) Trade Balance (USD bn) Current Account (USD bn) Primary Balance (BRL bn) Gross Debt (% of GDP) 1.4 4.3 7.3 4.50 4.03 -1.1 3.9 1816 11.9 6.5 40.5 -50.7 -61.9 74.3 -4.1 4.5 23.1 2.00 5.20 -4.5 -1.5 -6619 13.3 15.7 43.2 -12.5 -700.1 88.8 3.3 5.0 12.0 5.25 5.60 6.0 6.3 2876 14.7 8.0 67.5 3.4 -246 90.2 2.0 3.5 4.1 6.25 5.60 1.9 3.6 1350 14.2 9.2 70.4 -2.7 -157 91.5 2019 2020 2021 2022 The Brazilian cement industry has made a significant contribution to the development of the country, supplying a high-quality product from a modern industrial complex, in line with the most demanding requirements of sustainability and making it an international reference. Brazil was, in 2016, the sixth largest producer and the eighth largest consumer of cement in the world. The total cement industry consists today of 24 cement groups, 94 plants, located in 80 municipalities and 23 states, 54 being integrated units and 39 grinding mills. Most of the plants are in coastal regions of the country, accompanying the greater population density and the consumer market. From 2003 to 2014, Brazil’s annual consumption of cement practically doubled, due to income and job growth, strong expansion of mortgage lending, a fall in interest rates and inflation, and investments in infrastructure programs, reaching a record consumption of 72 million tons in the last year. During this same period, there were significant investments in expansion of installed capacity, reaching currently around 94 million tons per year. Since 2015 Brazilian Cement Industry and Market the country has been facing a serious political-economic crisis, which resulted in the reduction of investment in infrastructure and an increase in unemployment. The increase in interest rates and salary losses reflected heavily on the real estate market, civil construction consequently suffering a strong downturn, culminating in the worst crisis that the Brazilian cement industry has ever faced, with a cumulative drop in production of 25% in the last three years. Brazilian per capita consumption is currently (260 kg/person), less than half the world average (553 kg/person/year) and well below countries in full development or already developed. The high housing deficit and the precarious infrastructure base demand implementation of important investment programs in Brazil. Considering the increase in population, with growth predicted up to mid-2040, and cement being the indispensable basis for the construction of infrastructure, an increase in the production of the product is predicted for the next decades. To reconcile this growth with a reduction in its carbon emissions is a priority for the sector.