Month: July 2020

Deforestation in the Legal Amazon grew by 25.47%

The deforestation of the Legal Amazon in the first semester of 2020 was 25.47% higher than in the same period last year. The forest lost 3,070 km2, according to Inpe. This corresponds to about twice the area of the municipality of São Paulo. Also, this represents the worst result of the first semester in the last five years.

Brazilian Government aims to double railways by 30%

The share of railways in the total transportation in Brazil should reach more than 30% in up to eight years. This is the federal government’s plan. Currently, the railroad mode accounts for 15% of the Brazilian transport ecosystem. The Ministry of Infrastructure argued that the achievement of this goal should be guaranteed from the railroad concessions already planned.

Economic activity grew 0.5% in May, says IAE-FGV

The Economic Activity Indicator of the Getúlio Vargas Foundation (IAE-FGV) pointed to a growth of 0.5% in the economy in May compared to April. The index released shows a small recovery after strong retractions in the previous two months. FGV warns, however, that activity is still at a much lower level than in the pre-pandemic period.

Allianz concludes purchase of SulAmérica operations for $ 615 mm

Allianz announced the conclusion of the acquisition of SulAmerica’s car insurance operations and essential branches for R$ 3.2 billion ($ 615 mm). According to the German company, after the acquisition it becomes the second largest car insurance company. With the merger, Allianz projects a total turnover of R$ 7 billion ($ 1.3 bn) in 2020, compared to R$ 3.3 billion ($ 634 mm) last year.

Brazilian Government stops using $6.3 mm fund for the Amazon

The Brazilian Government has stopped using million-dollar resources already donated by other countries to combat crimes in the forest. More than R$33 million ($6.3 mm) already donated to Brazil through the Amazon Fund, a programme financed with money from Norway and Germany, are available for two actions: one to fight fires by Ibama and the other for the Ministry of Justice to expand the work of inspection in the forest by the National Force. These resources, however, are stored in the BNDES.

Profit of federal state-owned companies rose to $20.5 bn in 2019

State-owned companies recorded net profits of R$109.1 billion ($20.5 bn) in 2019, an increase of 53%, compared to 2018 when it was R$71.3 billion ($13 bn). According to the Ministry of Economy, there were 200 state-owned companies at the end of 2019, 46 of which were direct and 154 were indirect. Among those with direct control, 18 were dependent. At the end of 2018, the country had 209 state-owned companies.

Tourism sector in Brazil accumulates losses of $23 bn

The sector has already lost R$122 billion ($23 bn) from March to June. The amount is equivalent to more than three months of sales in the sector, estimated at R$40 billion ($7.5 bn), according to CNC data. The entity estimates that it may take until 2023 for the sector to resume the 2019 revenue level, before the pandemic. Today, the sector operates with about 15% of its capacity.

Caixa exceeds $943 mm in credit to micro and small companies

Caixa Econômica Federal has exceeded the R$5 billion ($943 mm) in credit to micro and small businesses during the pandemic. The Support Program for Micro and Small Businesses (Pronampe) reached the limit of R$4.24 billion ($800 mm) in loans and the lines of the Guarantee Fund for Micro and Small Businesses (Fampe) lent R$1.8 billion ($339 mm).