Brazil climbed from sixth to fourth among the main foreign investment destinations in the world in 2019, thanks to its program of privatisation of federal companies, according to a report from the United Nations Conference on Trade and Development (Unctad). Brazil received $ 75 billion in foreign investments last year, against $ 60 billion in 2018 (+ 26%) and the trend will continue in 2020 with the privatisation of large companies such as Eletrobras and Telebras, the report says.
The Brazilian trade balance registered a negative balance of $816 million in the third week of January, according to data from the Ministry of Economy. The main factor was the decrease in sales of manufactured and semi-manufactured products. Combining the first three weeks, the exported value is $8.85 billion and the imported value is $7.91 billion.
Chinese beef importers are seeking to renegotiate prices previously agreed when they closed deals to buy dozens of shipments from Brazil. Some of them are refusing to pay for shipments that already arrived in China. Brazilian beef exports to China increased more than 50% last year helping beef prices in Brazil to reach an all-time high. Some Brazilian beef exporters are now trying to divert cargoes that have not yet reached China to other potential destinations, such as Iran.
The GDP of 83% of 193 countries grew faster than Brazil’s in the period 2010-2019, one of the worst decades of economic expansion for the South American country, according to a study by economist Marcel Balassiano of the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV). Based on data from the International Monetary Fund, the report establishes an average growth of 1.3% per year in that period, almost a third of the world average (3.8% per year).
The International Monetary Fund improved its economic growth forecast for Brazil and projects a 2.2% increase in its GDP for this year and 2.3% by 2021. In its last “World Economic Outlook” the IMF says that this variation of 0.2% in relation to its projection in October 2019 is due to the approval of the Brazilian Pension Reform and improvements in the mining sector. The global economy will have a slow recovery with a 3.3% growth in 2020.