Day: June 25, 2020

Brazil economy could fall 7%, deficit top 11% of GDP

Brazil’s economic growth and fiscal outlook this year are shaping up to be worse than official government forecasts, making a return to austerity and reforms next year all the more pressing, said Treasury Secretary Mansueto Almeida. He added that the public sector primary deficit this year excluding interest payments could reach R$800 billion ($152 billion), or more than 11% of gross domestic product, while the economy is set to shrink around 6-7%.

Tax reform may guide “green reconstruction” in Brazil

The tax reform, expected to be voted in August, could be a boost for “green recovery” in Brazil. Sustainable economy, clean energy and low carbon emissions have been a new paradigm hunted in some countries that have already surpassed the peak of the new coronavirus. For the coordinator of the environmental front, tax reform is one of the ways to redirect public resources to this change.

Federal Public Debt rises to $800 bn

The cooling of the turbulence caused by the new coronavirus pandemic and the low salaries made the government’s debt rise for the first time in two months. The Federal Public Debt (DPF), which includes the federal government’s internal and external indebtedness, rose 2.17% in nominal terms in May compared to April. The stock rose to R$ 4.251 trillion ($ 800 bn).

IMF projected a 9.1% contraction of Brazil’s GDP

As competitiveness worsens in Argentina, Brazil, Mexico and Colombia, the International Monetary Fund (IMF) has revised down its outlook for economic growth in Latin America’s top economies this year. The IMF now expects Brazil, the region’s top economy, to suffer a 9.1% decline. In April, the fund had predicted a 5.3 % decline.