The GDP of 83% of 193 countries grew faster than Brazil’s in the period 2010-2019, one of the worst decades of its economic expansion, according to a study by economist Marcel Balassiano of the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV). Based on data from the IMF, the report establishes an average growth of 1.3% per year in that period, almost a third of the world average (3.8% per year).
The International Monetary Fund improved its economic growth forecast for Brazil and projects a 2.2% increase in its GDP for this year and 2.3% by 2021. In its last “World Economic Outlook” the IMF says that this variation of 0.2% in relation to its projection in October 2019 is due to the approval of the Brazilian Pension Reform and improvements in the mining sector.
The Latin American economy is recovering and will grow 1.6% in 2020 and 2.3% in 2021, driven by Brazil and despite the worsening of Mexico’s expansion forecasts and social unrest in Chile, according to the IMF report on “Global Economic Perspectives” presented today at the Davos Economic Forum.
Brazil Economy Minister Paulo Guedes attends this week the Davos Economic Forum, with the aim of attracting non-speculative foreign capital to finance projects, mainly infrastructure, showing the country’s improvements in inflation, risk, stock market rates and interests. The biggest attraction will be the privatisation and concessions package of state-owned companies, said the Privatisation Secretary, Salim Matar.
Mercosur trade deal is incompatible with the EU’s commitment to carbon neutrality and “may undermine global efforts to avert climate change”, according to analysis conducted for the Greens/European Free Alliance group. The political agreement reached in June by the EU and Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) is still in the process of technical and legal revision and subject to endorsement by national governments and the European Parliament.
After more than tripling last year, share offerings activity is expected to accelerate, with some bankers predicting that offerings may reach up to 200 billion reais ($48 billion). Brazilian stock sales were equivalent to 85% of all equity activity in Latin America in 2019, while Brazil’s gross domestic product is only about a third of the wider region’s.
Brazilian mergers and acquisitions of companies moved R$ 307 billion ($73.52 billion) in 2019, an increase of 58.6% compared to the previous year. According to a Transactional Track Record (TTR) survey, 1,448 transactions involving Brazilian companies were recorded over the past year. This number has been growing gradually since 2016, and experts forecast to continue in 2020.
President Jair Bolsonaro is set to visit India next week, aiming to boost trade with the Asian nation that has been expanding around 7% a year over the past decade and set to overtake China in terms of population in the next decade. Brazil sees a chance to increase its $7 billion in annual bilateral trade with India to $25 billion in the next few years.
Exports from Pernambuco fell by 30.3% in 2019 compared to 2018. Last year, the Brazilian state sold $1.3 billion, compared with $2 billion in 2018. The drop was steep compared to the 6,4% in national exports. The main reason would be the dependence of the local market on Argentina, the main international customer for Pernambuco products.
Brazilian government has welcomed the United States’ change of stance to support Brazil’s bid to join the Organization for Economic Cooperation and Development (OECD) ahead of Argentina. The decision shows the construction of a “solid partnership” in the Brazil-United States relationship,” capable of generating short, medium and long term” results, Foreign Minister Ernesto Araújo published in a social network.