Central Bank projects 6.4% drop in Brazil’s GDP

The Central Bank maintained its inflation estimate for 2020 in the reference scenario, which uses constant exchange and interest rates for the projection horizon. Accordingly, it revised the GDP projection for a 6.4% drop this year. The change in the projection is essentially associated with the advancement and duration of the pandemic in all national territory.

Source: Infomoney

Petrobras offers up to $1.8 million to finance startups

The Petrobras Connections for Innovation Program, in partnership with Sebrae, offers resources of up to R$10 million ($1.8 million) for projects in nine technological areas: digital technologies, robotics, energy efficiency, catalysts, corrosion, carbon reduction, geological modelling, and water inspection and treatment technologies. The goal is to utilise the innovative products in Petrobras’ operations.

Source: Money Times

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%.

Source: Reuters

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 sought 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.

Source: Money Times

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).

Source: Agencia Brasil