The report released by the IBGE shows worrying rates of inflation in Brazil. The rate of inflation in the month of May reached a higher level than that of May 2008. Flavio Maluf, who serves as the CEO of Eucatex, believes that something should be done to counter the increasing inflation rates. That way, Brazilians will regain their purchasing power and introduce new investments into the market.
Flavio Maluf stresses that the Brazilian economy is in a tricky situation. With the political uncertainties that exist for many months, the situation may turn from bad to worse. He emphasizes that the current government lacks strong measures for dealing with economic crisis. Lack of transparency is one of the outcomes of poor governance and persistent political turmoil. Maluf says that inflation will continue to devour Brazilian purchasing power if the government fails to take drastic measures.
Eucatex will navigate the economic turmoil
Eucatex is a firm that specializes in the manufacture of wood as well as its derivatives. Its line of products serves the construction and furniture industry. Additionally, the company has turned out to be an authority in the supply of high-quality paints. Flavio Maluf oversees the business strategy and growth plans of the firm. The current economic crisis directly affects Eucatex, since the firm is the major supplier of wood products. The decline in purchasing power has significantly lowered the sale of its wood products. The only advantage that Eucatex has is its diversified line of products that helps it overcome the market shifts and economic recession.
How to handle the economic crisis
Flavio Maluf suggests the adoption of strict state measures that holds various government administrations and individuals accountable for their actions. Companies should focus on diversifying their portfolio of services and products. Strict state measures will enable Brazil to strengthen its position in the international market. Maluf joined Eucatex Group in 1987. He started out in the trading area before switching to the industrial area. He led the company in the opening of a Sao Paulo-based plant. In philanthropy world, Maluf has played an instrumental role in improving the quality of health care through his partnership with the Hospital and Maternity Idio Carli. Be sure to follow Flavio on Twitter @Flavio_Maluf.