On the same day that the economic team revised the projection for GDP growth for 2020 from 2.4% to 2.1%, Economy Minister Paulo Guedes said the result could be even worse because of the coronavirus pandemic. In the worst scenario, GDP will be 1% if the pandemic takes over Brazil. It would be the fourth straight year of low growth after the recession.
Brazilian agribusiness exports in February fell 6.3% compared to the same period in 2019. The sector’s trade balance in the month was $5.35 billion. Sales totalled $6.41 million, while imports totalled $1.06 billion. The share of agro in the total foreign sales in Brazil was 39.2%. Exports of soybean oil, meat, cotton and sugar and alcohol complex (sugar and alcohol) had a favourable performance in the result, according to the government.
The declaration of the coronavirus pandemic by the World Health Organization (WHO) solidified the negative scenario for global and domestic assets. The circuit breaker mechanism was activated at B3 after the Ibovespa reached a 10.11% drop. On the return, the index deepened the fall to more than 12%. At the close, it fell 7.64%, to 85,171 points. The dollar closed up 1.65% to R$ 4.7215.
The subsidiaries in Brazil of the Spanish Telefónica and the Italian Tim announced this Wednesday their interest in jointly buying the mobile business of the Brazilian group Oi. Oi is the fourth largest operator in the Brazilian market, with a share of 16.2% and 37 million mobile customers. Oi mobile assets are valued, in total, at approximately R$18 billion ($4.5 billion).
In the first annual balance of BR Distribuidora after privatization, the company’s profit was R$ 2.2 billion ($488 million), against R $ 3.2 billion ($712 million) in 2018, a drop of 31.2%. In the fourth quarter, profit was R$ 96 million ($ 21 million), below the profit of R $ 1.6 billion ($ 400 million) registered a year ago. Net sales revenue fell 2.8% last year, to R $ 94.9 billion ($ 24 billion) compared to 2018, while the company’s net debt rose 87.3%, to R$ 4.4 billion ($ 1 billion)