Exports from Egypt to Brazil climbed 73.9% ever since Egypt reached a free trade agreement with the Mercosur in 2017. Exports from Brazil to Egypt were up 21.1%, according to a survey from Brazil’s National Confederation of Industry (CNI).
The Brazilian government’s spending cap rule faces a “material risk” of being breached from next year onward due to rising political risk and pressure to maintain welfare spending, ratings agency Moody’s said. Breaching the spending cap would push government debt even higher and threaten Brazil’s credit profile. Moody’s expects government spending to drop to about 39% of GDP in 2021 from 42% this year, which will support the fiscal accounts, although this would still be higher than the 38% of GDP pre-pandemic last year.
The race toward central bank digital currencies (CBDCs) is tightening, with Brazil reportedly looking to launch one by 2022 in a bid to help digitize payments. Even though it’s not a winner-take-all competition, central banks first out of the gate might prove instructive to those who follow. Roberto Campos Neto, president of Brazil’s central bank, said the country’s new digital currency will work with its new instant-payments system.
In this year’s Global Innovation Index, compiled by the World Intellectual Property Organization (WIPO) in partnership with Cornell University and Insead, Brazil appears in the 62nd position. This result is an improvement compared to 2019, when the country ranked 66th. However, Brazil is still lagging behind other Latin American nations such as Mexico, Chile and Costa Rica.
BYD recently started operation of a battery production facility in Brazil, where it already has two other factories. The latest battery plant in Manaus is rather small, with an initial investment of just R$15 million ($2.7 million). The output will be up to 18,000 battery modules per year. Primarily, the batteries will be used in BYD’s buses.