17 November 2013 20:20 [Source: ICIS news]
CARTAGENA, Colombia (ICIS)--The World Cup games in Brazil may help fuel the country’s economy, but the upside for chemicals, particularly plastics, will be only minor, since demand from infrastructure projects is mostly restricted to polyvinyl chloride (PVC), a consultant said on Sunday.
The arrival of tourists in the 12 Brazilian cities hosting the event could help the country grow slightly more than what is being projected, said Otavio Carvallho with consulting firm MaxiQuim.
The World Cup bodes well for retail plastic applications, such as beverages and food, sectors that are doing well in Brazil and where demand could benefit as a result of the games.
But for the infrastructure projects, where Brazilian reais (R) 28bn ($12bn, €9bn) are being invested, the outlet for plastics is small except for PVC, he said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
Carvalho said analysts are predicting Brazil’s GDP will grow by 2% in 2014, not an improvement on 2013.
He said 2013 was a year that many in the industry had forecast to be weak, but one that turned out not be as weak as it had been expected.
The APLA conference ends on Tuesday.
($1 = R2.32, €0.74)
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