Moody’s reduced Brazil’s GDP projection from 2.0% to 1.8% due to the impact of the coronavirus. Moody’s said the coronavirus will hamper economic growth in many countries over the second quarter. According to the agency, the resumption of normal economic activities will depend on how long it will take to contain the global spread of the virus.
Ambev announced that will invest more than R$2 billion ($400 million) in Brazil in the coming months. The funds will go to a malt area in the Southeast, a brewery in the North and a can factory. The company says that the new industrial units will help to release the growth of the premium portfolio, its main expansion line. In 2019 Ambev earned R$12.2 billion ($2.4 billion), an increase of 7.4% compared to 2018.
The advancement of coronavirus around the world can bring down the flow of Foreign Direct Investment (FDI) by up to 15% in 2020. This average reduction was more profound in companies from developing countries like Brazil: – 16%. It is estimated that foreigners have already taken $ 44.7 billion from the São Paulo Stock Exchange this year alone.
Itaú Unibanco reported a review of its projection for world GDP growth in 2020 from 3.1% to 2.7%. According to Itaú Unibanco economists, the bank also lowered its growth forecasts for China in the year, to 5.3% compared to 5.8%. It maintained the projection of US GDP growth at 2.0% for 2020.
Brazil and the United States signed an agreement in the military area to develop future projects. The Research, Development, Test and Evaluation Agreement (RDT & E) will cover the way for improving or providing new military capabilities. The Brazilian government hopes to facilitate its access to the North American defence market, as well as to enable the entry of Brazilian products in 28 other NATO countries.