Month: March 2021

Government tax burden estimated at 31.64% of GDP in 2020

The Gross Tax Load of the general government is estimated at 31.64% of GDP in 2020, the National Treasury. The figure is 0.87% lower than that observed in 2019, when it stood at 32.51% of GDP. By this estimate, the tax burden last year was the lowest since 2010. According to the Treasury, the drop is explained mainly by the effects of the covid-19 pandemic on economic activity and tax exemptions granted as a result of the health crisis.

Source: UOL Ecomomia

Copersucar buys all Cargill shares in Alvean

Copersucar agreed to buy Cargill shares in Alvean, becoming the sole shareholder in the world’s largest sugar trading company. The transaction announced on Tuesday has already been submitted to the antitrust regulator CADE and depends on the approval of the agency. The purchase price of Cargill’s 50% stake was not disclosed. Sources say Copersucar will pay with funds from its own cash flow.

Source: Valor International

Aneel forecasts $391 mm in R&D and energy efficiency resources

Aneel estimates that the Account for Energy Development (CDE) should receive R$ 2.230 billion ($391 mm) in unused resources in R&D and energy efficiency projects. The agency regulated Law 14.120/2021, arising from Provisional Measure 998/2020, which establishes the allocation of resources to mitigate tariff impacts of the Covid-19 pandemic on energy tariffs.

Source: Energia Hoje

Share of indebted reaches second highest level in 11 years, says CNC

The share of families in debt in March reached the second highest level in 11 years, according to the National Confederation of Trade of Goods, Services and Tourism (CNC), which has just announced the Survey of Consumer Indebtedness and Delinquency (Peic) for the month. In the survey, the share of indebted families stood at 67.3%, up from 66.7% in February, and higher than in March 2020 (66.2%).

Source: Valor Investe

Bars and restaurants sector predicts collapse without reissue of BEm to pay wages

Business owners in the bar and restaurant segment are expecting the resumption of the Income and Employment Preservation Programme (BEm), which ended in December. The frustration lit a red alert in the sector, one of the most punished by the covid-19 pandemic. The program allows companies to reduce the working hours and the wages of employees, with the government assuming the supplement of the amount. The measure, according to Abrasel, avoided millions of layoffs in 2020.

Source: R7 Economia

Brazil’s GDP in 2021 should grow below the region’s average, says World Bank

The World Bank reported that the institution’s forecast is that Brazil’s Gross Domestic Product (GDP) will grow by 3% in 2021, below the average forecast for Latin America, of 4.4%. According to the report, neighbouring countries are expected to outperform Brazil, for example: Argentina: 6.4 percent; Chile: 5.5 percent; Colombia: 5 percent.
For the World Bank, Latin America and the Caribbean suffered the greatest damage to the economy and health during the Covid-19 pandemic.

Source: G1 Economia

CTG Brasil invests $ 178k in hydroelectric plant programme

CTG Brasil has signed a partnership with Instituto Meio and is launching a pilot program to foster job and income generation in the communities surrounding its hydroelectric power plants. The R$ 1 million ($178 k) investment will be directed at entrepreneurial actions and the acceleration of productive groups in the regions of the Jurumirim and Garibaldi plants until 2022. The program will help micro and small entrepreneurs through training, which will count on mentoring, acceleration and incubation, including specialised consultancy and financial resources for the chosen groups.

Source: Canal Energia

After $893 mm loss in 2020, fashion chains fall even further

The closure of shops due to the pandemic this month and uncertainties about the reopening of traditional retail are expected to hinder fashion retail in the first half – one of the segments most impacted by the crisis caused by the coronavirus. The demand in this segment have been already affected by the greater restrictions on circulation since February. And online sales, despite the large growth, still represent less than 15% of the annual sales of the big chains.

Source: Valor International