The market dynamics section of the report examines the diverse factors which govern the process of manufacturing, distribution, and usage of automotive telematics, globally. This analysis will provide an in-depth understanding of the direction in which the market is headed, and the impact of various factors on the same.

In the first half of 2017, Brazil’s economy reached a turning point, exiting from the deepest recession in decades. The economy was supported by a record-high agricultural harvest and an uptick in consumption, as a result of lower inflationary pressures, decreasing borrowing costs and positive sentiments over the adopted government reforms. Based on these fundamentals, in October 2017, the IMF raised its growth estimates for Brazil’s economy from 0.3% to 0.75% in 2017, and from 1.3% to 1.5% in 2018. The institution defended the government drive towards fiscal sustainability, including the adopted public spending cap in December 2016 and the ongoing pension reform, as key measures for the recovery of confidence and private sector investment. Nevertheless, economic growth is projected to remain subdued in the medium term, at about 2% per year through 2022, mainly due to the recent rise in political instability that poses risks to the government’s reform agenda. New corruption investigations surrounding top government officials coupled with the upcoming general elections in October 2018, are rapidly closing the window for legislative action. Notably, reforms of the pension system, public healthcare, tax code, and infrastructure concessions regime are seen as essential to support macroeconomic stability, secure confidence and bring the economy back to its potential.