GDP Monitor points to 1.1% rise in November over October 2020, says FGV

Brazil’s GDP advanced 1.1% in November compared to October 2020, according to the GDP Monitor, compiled by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV). Compared to November 2019, the economy fell 0.6% in November 2020. The 1.1% growth of the economy in November compared to October reflects the growth registered in the three major economic activities (agriculture and livestock, industry and services).

Source: Correio Brasiliense

Conab sees up to 30.5% drop in Brazil’s coffee harvest in 2021

Brazil’s coffee harvest in 2021 is expected to be between 43.85 million and 49.58 million 60-kilo bags, a drop of between 21.4% and 30.5% compared to last year, projected by the state-owned Companhia Nacional de Abastecimento (Conab) in its first survey of the season. Arabica coffee production was estimated at between 29.7 million and 33 million bags, with a decline of between 32.4% and 39% compared to the previous year.

Source: 6 Minutes

Copom keeps basic economic interest rate at 2% at first meeting 2021

At its first meeting in 2021, the Central Bank’s Monetary Policy Committee (Copom) decided to maintain the basic interest rate at 2 percent per annum, the historic low. The decision was unanimous. It is the third consecutive meeting in Copom to maintain the rate at 2%. In the statement, the Central Bank said that with regard to the inflation scenario, there are risks for both directions.

Source: G1

IDB and BNDES invest $28 mn to reduce PPP “mortality” in Brazil

The IDB and BNDES have announced a R$150 million ($28 million) plan to try to speed up approval and improve the quality of Public-Private Partnership (PPP) projects in the country. According to IDB data, of the 1,084 PPPs in the country that have started since 2014, 811 had not been completed by September 2018. And the so-called mortality rate, i.e., of projects that simply do not succeed, was 86% in the last five years.

Source: 6 Minutos

Rejection to Bolsonaro government rises to 40%, survey shows

The percentage of those who rate the Jair Bolsonaro government as bad or bad has risen from 35% in December last year to 40% in January this year, according to the XP/Ipespe survey. The percentage of those who see the Bolsonaro management as excellent or good has fallen from 38% to 32%. This is the first time since May 2020 that there has been an increase in the percentage of critics of the government and a reduction in the percentage of supporters.

Source: Valor Investe

Brazil has lost on average 17 factories per day in the last six years

Ford’s decision to close its plants in Brazil highlighted the process of deindustrialization underway in the country. For six consecutive years, since the recession began in 2014, Brazil has seen the number of industries in the country fall. Last year, 5,500 factories closed down. In all, between 2015 and 2020, 36,600 plants were shut down. This is equivalent to almost 17 industrial plants exterminated every day.

Source: UOL Economia

BNDES approves $740 mm to build thermoelectric plant in the Port of Açu

BNDES approved a R$3.93 billion ($740 mm) financing for Gás Natural Açu to build the GNA II thermoelectric plant at the Port of Açu, in northern Rio de Janeiro state. The bank detailed that the thermal plant will have a total installed capacity of 1.6 gigawatts (GW) and will integrate the project of the liquefied natural gas (LNG) generation park under development in the port.

Source: G1

Ford has $62 mm in loans with BNDES

BNDES said it has two direct financing contracts with Ford, totalling R$335 million ($62 mm). According to the bank, the services were contracted in 2014 and 2017 and were aimed at projects to develop new products of the automaker in the country. The bank contacted the company to ask for further clarifications about the closure of the plants and is waiting for an answer to assess the impacts.

Source: Folha