Brazil’s 2022 GDP projections lowered to 2.1% due to political instability, draught and inflation

The rapid deterioration of the political and institutional environment, added to persistent inflation, a historic drought that compromises energy supply and agribusiness, high interest rates and fiscal disarray have already contaminated the economic scenario in Brazil and deflated the prospect that the market will gain momentum after a year and a half of pandemic. The Focus bulletin, which gathers market estimates, revised its forecast for growth next year from 2.5% in January to 2.1%. The International Monetary Fund lowered its expectations to 1.9%. Entrepreneurs and merchants also review plans.

Source: Folha Sao Paolo

Brazilian economy to grow 4.5% in 2021, World Bank projects

The Latin American economy will grow by 5.2% this year, above the 3.2% forecast in January, and Brazil’s will register an expansion of 4.5%, according to projections released by the World Bank (WB). The multilateral organisation stressed that economic growth in the region will depend on “moderate progress in vaccination, the relaxation of restrictive measures, and an increase in the price of raw materials.

Source: UOL Economia

Brazil could get $1.05 bn a year in revenues from global corporate taxation

Brazil could obtain 900 million euros ($1.05 bn) in additional revenue per year if it imposes a minimum global tax rate of 15% on Brazilian multinationals under a future tax agreement that may receive the green light from the G20 in July in Venice, Italy. The estimate is from the European Observatory on Taxation, based in Paris and financed by the European Union (EU).

Source: Valor Investe

Rural credit reaches $45 bn and should exceed the programmed amount

The disbursement of credit to rural producers in Brazil under the 2020/21 Crop Plan reached 233.9 billion ($45 bn) reais in the period from July 2020 to May this year, up 19% compared to the same time last season, the Ministry of Agriculture said. The ministry, which sees the figure as a sign of the “good moment” of Brazilian agriculture, also said that the amounts programmed for rural credit in the year should be exceeded, given the reopening of lines of programs not yet contracted.

Source: Money Times

Bolsonaro approves Pronampe, which will offer $960mm to small businesses in 2021

President Jair Bolsonaro has sanctioned Bill (PL) 5.575/2020, authored by Senator Jorginho Mello (PL-SC), which makes the National Programme to Support Micro and Small Enterprises (Pronampe) permanent. The announcement was made on Bolsonaro’s social networks. The expectation is that R$ 5 billion (£960 mm) will be granted through the program for micro and small businesses, an amount that could reach R$ 25 billion (£4.8 bn) if supported by public and private banks. Last year, a total of R$ 37 billion (£7.1 bn) were passed on by Pronampe.

Source: CNN Brasil

Agriculture and livestock grow 5.2% in first quarter and highlight in the GDP

Agriculture and livestock grew 5.1% in the first quarter of 2021, compared to the same period last year, and was the highlight in the Gross Domestic Product (GDP), which advanced 1.2% from January to March. Industry advanced 3% and services fell 0.8%. The data was released by the Brazilian Institute of Geography and Statistics (IBGE).In relation to the last three months of 2020, the agro GDP advanced 5.7%.

Source: G1 Economia

Banks now see GDP growth above 5% this year

The positive surprise with Brazil’s first quarter Gross Domestic Product (GDP) numbers has opened the door to a series of upward revisions in banks’ projections for the economy’s performance this year, with some seeing GDP growth in excess of 5%. Brazil’s Gross Domestic Product (GDP) grew 1.2% between January and March, the third consecutive quarter of gains.

Source: Money Times