As competitiveness worsens in Argentina, Brazil, Mexico and Colombia, the International Monetary Fund (IMF) has revised down its outlook for economic growth in Latin America’s top economies this year. The IMF now expects Brazil, the region’s top economy, to suffer a 9.1% decline. In April, the fund had predicted a 5.3 % decline.
The new sanitation project aims at the universalisation of basic sanitation by 2033. Currently, 100 million people do not have sewage collection and 34 million are without drinking water. Currently, only 6% of cities are served by private initiative. In the other 94%, the service is provided by state-owned companies. The estimated cost of the project is R$700 billion.
The Minister of Agriculture launched an investment plan for sustainable agriculture. The investment potential for sustainable agriculture in Brazil until 2030 is $ 692 billion, according to the Ministry of Agriculture. Still shy, the market has moved $ 5.81 billion since 2015 in the Brazil.
A group of 29 global investment firms that manage $3.7 trillion are demanding meetings with Brazilian diplomats around the world to call the government to stop soaring deforestation in the Amazon. Deforestation in the Brazilian Amazon increased by a further 34 % in the first five months of 2020, according to data from the government space research agency INPE.
Brazilian Central Bank has announced measures that can facilitate lending to companies with annual revenues of up to R$50 million ($ 9.4 mm). Through the measure, the monetary authority aims to mitigate and prevent the economic and financial effects of the spread of the coronavirus pandemic. The monetary authority estimated that the measure could release up to R$ 55.8 billion ($ 10.5 bn).
The Brazilian economy registered a 9.3% decrease in April, in comparison with March, according to data from the GDP-FGV Monitor, released by the Getúlio Vargas Foundation (FGV). In comparison with April of last year, the fall was even greater, of 13.5%. In the moving quarter ended in April, the decline was 6.1%, compared to March.
The trade balance registered a surplus of $20.366 billion in the accumulated for 2020. The surplus occurs when exports exceed imports. When the opposite occurs, a trade deficit is recorded. Despite the positive amount, the result is 15.7% lower than the balance of $24.154 billion registered in the same period last year.
Seven major European investment firms have told they will divest in Brazil if they don’t see progress towards a solution to the growing destruction of the Amazon rainforest. The growing threats from investors with more than $2 trillion in managed assets, show how the private sector is taking global action to protect the world’s largest rainforest.
Brazil’s participation in international funds remains in free fall. In global funds, the share of Brazilian assets fell to just 0.2% in May, from 0.4% in December 2019, according to a study by BTG Pactual. In funds dedicated to the BRICS (Brazil, Russia, India, China and South Africa) the fall was even more pronounced, from 17.4% in December to half, 8.8% last month.
The Ibovespa closed higher for the third trading session followed on Thursday, with Itaú Unibanco’s shares among the biggest positive contributions, in addition to a further reduction in the basic interest rate, signalling yet another ‘residual’ cut ahead. The financial volume of the session totalled R$ 27.77 billion ($ 5.2 billion).