Pension deficit is $68 bn in 2020

The total shortfall of welfare systems in Brazil reached R$368.2 billion ($68 bn) in 2020, equivalent to 5.0%, or almost half of the central government’s primary deficit last year. The bill considers the expenditures of the General Social Welfare Policy (RGPS), of the Civil Servants’ Own Social Welfare Policy (RPPS), as well as the pensions and the inactive expenditures of the Armed Forces.

Source: 6 Minutos

Nubank is valued at $25 bn and becomes the 4th most valuable bank in Latin America

Nubank’s market value already reaches $25 billion. To get an idea of how the digital bank has evolved, just remember that in June 2019 it was valued at $10 billion. As a result, Nubank has become the fourth largest financial institution in Latin America, in market value, behind Itaú Unibanco, Bradesco and Santander Brasil.

Source: Money Times

Unemployment stands at 14.1%, the highest rate for November since 2012

With a record increase in the number of employed people, the unemployment rate in Brazil stood at 14.1% in the quarter ended in November, according to data from the IBGE’s Continuous Pnad. The rate is slightly lower than in the quarter ended in August (14.4%), which serves as a basis for comparison. The IBGE considers, however, that the index has remained stable, as it is a very small variation. There are still 14 million Brazilians looking for a vacancy.

Source: Extra Globo

Central government has a deficit of $138 bn in 2020, the largest in the historical series

With a sharp increase in spending to confront the covid-19 pandemic last year, the shortfall in central government accounts reached R$743.787 billion ($138 bn) in 2020, the largest primary deficit in the historic series of the National Treasury, begun in 1997. The result represents a deficit equivalent to 10.0% of GDP last year.

Source: Isto É

Industrial cost goes up by 8.6%

The Industrial Cost Indicator rose 8.6% in the third quarter of 2020 compared with the previous quarter, pressured by rising input and raw material costs. The figure, released by the National Confederation of Industry (CNI), is the largest increase ever recorded in the historical series that began in 2006. The rise in the index has triggered a warning signal in industry, according to the entity, because the recent series shows the increasing increase in costs related to domestic and imported intermediate goods.

Source: UOL Economia

New government target for fibre optics in 99% of Brazilian cities

The President signed the decree establishing the new General Plan of Universalisation Goals (PGMU 5) for the telecommunications sector, valid for the period 2021 to 2025. The novelty of the new plan is the obligation for concessionaires to invest in the deployment of fibre optic networks, the so-called backhaul, in 1,500 Brazilian municipalities. If the new target is met, it is estimated that fibre-optic internet coverage will reach about 5,500 cities, equivalent to 99% of Brazilian municipalities by 2024.

Source: Money Times

Aneel estimates impact of $245 mm with reduction in flow of Belo Monte

In a letter sent to the Brazilian Institute of Environment and Renewable Natural Resources, the National Electrical Energy Agency states that the change in the flow of the Belo Monte dam will have an impact of around R$1.3 billion ($245 mm) for consumers in January and February 2021. The cost increase, according to Aneel, is a consequence of activating more thermoelectric generation to compensate for the plant’s decrease in production.

Source: Canal Energia

Arab League trade generates surplus of $6.1 bn in 2020

Trade between Brazil and the Arab League generated $6.11 billion in surplus for the Brazilian side in 2020. The result corresponds to 12.2% of Brazil’s record total surplus of $50 billion over the year. It also represents an increase of 16.2% over the positive balance of the 2019 Brazil-Arab League balance, according to data from the Arab-Brazilian Chamber of Commerce. Export performance also keeps the Arab League among Brazil’s three largest trade partnerships abroad, behind China and the United States.

Source: Portal do Agronegocio