Category: Macroeconomy/Finance

Information regarding Brazil’s finance sector and the country’s macroeconomy.

Caixa will guarantee better credit conditions

Caixa Econômica Federal issued a statement stating that it will guarantee better credit conditions to help the country to overcome the current economic uncertainty due to the impact of the coronavirus and the oil turbulence in the markets. The statement said that the bank will guarantee the best conditions for personal and housing credit, financing for infrastructure, working capital for the construction sector and micro companies.

Moody’s cuts Brazil’s GDP to 1.8% in 2020

Moody’s reduced Brazil’s GDP projection from 2.0% to 1.8% due to the impact of the coronavirus. Moody’s said the coronavirus will hamper economic growth in many countries over the second quarter. According to the agency, the resumption of normal economic activities will depend on how long it will take to contain the global spread of the virus.

Coronavirus reduce FDI in Brazil by up to 16%

The advancement of coronavirus around the world can bring down the flow of Foreign Direct Investment (FDI) by up to 15% in 2020. This average reduction was more profound in companies from developing countries like Brazil: – 16%. It is estimated that foreigners have already taken $ 44.7 billion from the São Paulo Stock Exchange this year alone.

Dollar goes up for the 12th time

The growth remained despite the fact that the Brazilian Central Bank sold $ 3 billion in currency swap. The dollar hit a historic record again this Thursday, reaching R$ 4.67 at the peak of the day, with the Brazilian currency battered along with other risk assets worldwide due to obstinate fears related to the coronavirus. The high is the 12th consecutive. Only in March the currency jumps 3.79% and shoots 15.90% in the accumulated of 2020.

Bovespa closes down 4.65%

The main index of the Brazilian stock exchange, B3 closed in a sharp drop on Thursday (5). The index retreated 4.65%, to 102 233 points, following the negative atmosphere in foreign markets, amid the volatility generated by the uncertainties about the effect of the coronavirus outbreak on global economic activity.

Covid-19 impacts negatively the Brazilian exports in $104Mn

The coronavirus outbreak has a negative impact of $104 million on Brazilian exports. In global terms, losses to different economies in the world would already be estimated at $50 billion, a demonstration of the dependence that has been created in relation to the supply of Chinese parts and items in several global production chains.