Banks now see GDP growth above 5% this year

The positive surprise with Brazil’s first quarter Gross Domestic Product (GDP) numbers has opened the door to a series of upward revisions in banks’ projections for the economy’s performance this year, with some seeing GDP growth in excess of 5%. Brazil’s Gross Domestic Product (GDP) grew 1.2% between January and March, the third consecutive quarter of gains.

Source: Money Times

Agreement between Brazil and India could increase exports by $21 bn

The commercial approximation between Brazil and India has been accelerating since 2004 and a study by the Institute for Applied Economic Research (Ipea) indicated that an agreement between the two countries would result in an increase of $21 billion in Brazilian exports. In this scenario, the Foreign Trade Secretary of the Ministry of Economy, Lucas Ferraz, highlighted the strategic relevance of India as a trade partner in the global scenario.

Source: Portal do Agronegocio

Mercury Renew arrives with 2GW and investments of $1,1 bn

Perfin and Servtec have entered into a partnership that resulted in Mercury Renew, which is focused on centralized solar photovoltaic generation. The plans are ambitious, the company was born with the goal of implementing 2GW until 2025, an investment that, if confirmed, will total about R$ 5.5 billion ($1.1 bn). But the pipeline is much more extensive, around 17 GW, resulting from the partnership with Solatio, through which Mercury has the preference to analyze the projects if they are interesting to enter its portfolio before being offered to the market.

Source: Canal Energia

BNDES approves financing of $41.5 mm for wind farm in RN

The National Bank for Economic and Social Development (BNDES) announced the approval of a R$ 216.7 million ($41.5 mm) financing for the construction of the Santa Martina 9 wind farm, located in four municipalities of Rio Grande do Norte. Resources correspond to 76% of the total value of the investment in the project; the plant has 63 MW of installed capacity and is part of the wind farm complex Rio do Vento.

Source: Energia Hoje

Water crisis threatens inflation and GDP, government says

The brewing water crisis in Brazil is a risk that cannot be ignored and may impact the economy and inflation,
Special Secretary of Finance Bruno Funchal said Monday in a hearing in the Senate. While commenting on the prospects for the economy, Mr. Funchal said there is no doubt that the faster mass vaccination, the better GDP growth will be this year and next. Vaccination, growth, and fiscal improvement are closely linked, but there are risks ahead, according to him.

Source: Valor International

Fitch reaffirms BB- rating of Brazil, with negative outlook

Ratings agency Fitch kept Brazil’s long-term credit rating in local and foreign currency unchanged at BB-, as well as the “negative” outlook. In a report released earlier, Fitch reports that the country remains with high public debt, rigid fiscal structure, fragile economic growth potential and challenging political scenario, which makes it difficult to advance economic and fiscal reforms in the appropriate period of time.

Source: Valor Investe

CGT Eletrosul purchases the entire TSLE for $41.7 mm

Eletrobras informed the market that its subsidiary CGT Eletrosul signed a contract for the acquisition of the remaining 49% of the capital stock of CEEE-T in Transmissora Sul Litorânea de Energia (TSLE). With the completion of the operation, CGT Eletrosul will hold 100% of the capital stock of TSLE, in which it was already a shareholder. The operation is conditional on obtaining the consent of TSLE’s creditors.

Source: Canal Energia