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
Category: Macroeconomy/Finance
Information regarding Brazil’s finance sector and the country’s macroeconomy.
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
Provisional measure releases $1.9 bn to Pronampe
An interim measure (MP 1020/20) has been published that opens an extraordinary credit of R$ 10.1 billion ($1.9 bn) for financial charges of the Union. The planned resources will be used to make it possible to pay quotas into the Operations Guarantee Fund (FGO) for the National Support Programme for Micro and Small Businesses (Pronampe).
Source: UOL Economia
More than 60% of small entrepreneurs want to invest in 2021
Sebrae research shows that 63% of micro and small business owners intend to invest in their own business by 2021. Although most micro and small entrepreneurs intend to invest in their business in 2021, 27% said they could not afford to invest in 2021, and 10% said they intend to save money for an emergency.
Source: Money Times
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
Caixa announces financing programme of up to $400
Pedro Guimarães, president of the Caixa Econômica Federal (CEF), said that the institution will launch what he called a “micro-finance programme. The proposal, he said, is to offer financing ranging from R$500 to R$2,000 ($100 to $200) to more than 10 million Brazilians, with interest rates between 1.5% and 2.5% per month.
Source: Jornal Contabil
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
BDMG issues $50m in sustainable bonds and debut among public banks
The Development Bank of Minas Gerais (BDMG) became the first Brazilian public bank to issue so-called sustainable securities, which are debt securities intended to finance environmental and/or social projects. The transaction was carried out on the New York Stock Exchange for $50 million, and the securities were acquired by IDB Invest.
Source: 6 Minutos
Impostometer takes first annual fall: $89.5 bn less in 2020
For the first time since it was created, in 2005, the Impostômetro of the Commercial Association of São Paulo (ACSP) registered an annual drop in tax collection in the country. The entity estimates that Brazil will end the year with a 17.85% reduction, or R$447 billion ($89.5 bn), in municipal, state and federal tax collection compared to 2019. Last year, the amount collected was R$ 2.5 trillion ($500 bn).
Source: Isto É
