Union covered $2.4 bn in state debts in 2020

In 2020, the National Treasury paid R$13.265 billion ($2.4 bn) in state debts. This is 58.9% more than in 2019, when the Union had disbursed R$ 8.35 billion ($1.46 bn). Of this total, most, R$ 8.251 billion ($1.44 bn), is related to late payment by the state of Rio de Janeiro. In second place comes Minas Gerais, with R$ 3.176 billion ($557 mm) covered by the Union.

Source: Noticias Agricolas

Expectations for GDP in 2021 fall from 3.49% to 3.40%

Market expectations for GDP growth in 2021 fell from 3.49% to 3.40%, after rising last week. The projection for 2020 rose from -4.40% to -4.36%, after being maintained last week and after arriving at a very pessimistic estimate of -6.54% at the end of June amid the pandemic. The projection data are in the Focus Newsletter, which is released every Monday by the Central Bank.

Source: Valor Investe

Trade account shows deficit of $42 mm in December, but 2020 closes with surplus of $51 bn

Brazil’s trade balance is expected to increase by 3.9% in 2021, at $53 bn, compared to last year’s $51 bn, the Ministry of Economy reported in a scenario that foresees GDP growth of between 3.2% and 3.8%. According to the foreign trade secretary, exports are expected to grow by 5.3% to $221.1 bn, as well as imports, up 5.8% to $168 bn, resulting in a 5.5% percentage increase in trade compared to 2020, at $389.2 bn.

Source: 6 Minutos

Public debt due in 2021 already reaches $262bn

The National Treasury begins 2021 with a trillion-dollar bill to be paid to investors. The debt due this year already totalled R$ 1.31 trillion ($262 bn) at the end of November, an amount that should grow with the incorporation of more interest. The challenge comes in a decisive year to dictate the course of reforms considered essential for the country’s fiscal balance.

Source: R7

Social Security has a negative balance of $121 bn

The social security deficit reached R$604.30 billion ($121 bn) from January to November of this year, after revenues totalled R$724.82 billion ($145 bn) and expenses, R$1.329 trillion ($266 bn). The information is from the Summary Report on the Budgetary Execution of the Union (RREO), released recently by the National Treasury. The deficit is higher than that recorded in the same period last year, when it was R$ 292.66 billion ($58.6 bn).

Source: Valor Investe

New minimum wage of $220 from 1st January; impact is $800 mm

President Jair Bolsonaro said he would sign on Wednesday a provisional measure increasing the minimum wage in the country to R$1,110, effective from 1st January, 2021. The readjustment represents an increase of 5.26% over the current amount. The impact on public accounts with the readjustment will be approximately R$4 bn ($800 mm).

Source: UOL Economia