Category: Macroeconomy/Finance

Information regarding Brazil’s finance sector and the country’s macroeconomy.

Caixa paid $ 12 bn in emergency aid

Caixa Econômica Federal paid R $ 65.5 billion ($ 12 billion)in emergency aid, in addition to the first and second instalments, said the bank’s president, Pedro Guimarães. In total, 55.9 million people have received some portion of the benefit since the program was created in April, to help people cope with the impacts of the covid-19 crisis.

Against the world, Brazil may increase carbon emissions in 20%

The fall in global economic activity will make the world reach the goal of reducing gas emissions stipulated by the Paris Agreement. The estimate is that the volume of carbon discharged into the atmosphere will drop 6% globally. Brazil may go against this trend. An analysis made by the Climate Observatory points to an increase of up to 20% in Brazilian emissions, in 2020. The reason is the growth of deforestation in the country.

Emergency aid will impact $ 28 bn

Demand greater than that predicted by the R$ 600 ($ 110) emergency aid raised the forecast for spending on the benefit to R$ 151.5 billion ($ 28 billion). The estimate, however, considers only the payment up to the third instalment, not taking into account a possible extension of the aid. The amount is 54.2% higher than the initial projection of R$ 98.2 billion ($ 18 billion) announced by the government.

Congress approves $ 62 bn credit for government to pay expenses

Congress approved the supplementary credit of R$ 343.6 billion ($ 62 billion) that would allow the federal government to circumvent the so-called golden rule and issue debt to pay expenses with pensions, salaries and social benefits. Most of the R$ 213.7 billion ($ 38 billion) credit is used to pay Social Security benefits, such as retirement and pensions.

GDP contraction may be greater than 5% in 2020

Treasury Secretary Mansueto Almeida said that the contraction of Gross Domestic Product (GDP) this year may be greater than 5%, compared to an official estimate of a 4.7% decline, and stressed that projections worldwide are being revised by account of the coronavirus pandemic.

Surplus in the 2nd week of May was $ 1.290 bn

The Brazilian trade balance registered a trade surplus of US $ 1.290 billion in the second week of May (from 11 to 17). According to data released recently by the Ministry of Economy’s Foreign Trade Secretariat, the value was reached with exports of US $ 3.818 billion and imports of US $ 2.528 billion.

São Paulo signs the largest highway concession of $ 2.6 bn

São Paulo announced the signing of a concession contract between the São Paulo State Transport Agency (Artesp) and the Eixo SP concessionaire to operate the PiPa Lot (between Piracicaba and Panorama). With the signing of the contract, Eixo SP takes the largest road network ever tendered in Brazil, with 1,273 kilometres, for a period of 30 years. The winning consortium, under the leadership of Banco Pátria, will make an investment of R$ 14 billion ($ 2.6 billion).