As the world’s seventh largest, Brazil’s chemical industry has contributed to the rise of Brazil as a global economic powerhouse. The country’s pre-salt oil exploration, biomass potential and the rise of the middle class have the ability to drive economic growth, positioning Brazil amongst the top five largest global economies and chemical industries worldwide.
Critical to ensuring the sustainability and profitability of the sector is new investment. A potential investment in new capacity of $167 billion investment between 2010 and 2020 is required to decrease the trade deficit and meet rising demand. Over the past two decades, investment has been far below the needs of the country, resulting in a chemical product trade deficit that grew from $1.2 billion in 1990 to $26.5 billion in 2011. Brazil’s increased consumption of chemicals in recent years was largely supplied by imports.