Brazil reduces in 42% hiring of public servants

The Brazilian federal government has drastically reduced in recent years the hiring of federal civil servants, focusing instead on filling temporary vacancies. From 2016 to 2020, the number of workers entering the public sector declined by 42.11%, to 45,976 from 79,397, according to data collected by the Economy Ministry. The trend was intensified in 2020 because of the pandemic.

Source: Valor International

Project regulates exploitation of power plants at sea

A project of law, presented this week can start the regulatory framework for the exploration of energy on the Brazilian coast, whether it is wind, solar or tidal. It is PL 576/2021, which regulates the authorisation for the use of offshore energy potential, installed at sea. In Brazil, the main source of energy is hydroelectric. According to the proposal, the diversification of the energy matrix and the abandonment of a single source is fundamental to increase the energy security of the national electric system.

Source: Money Times

OECD projects higher growth for Brazil in 2021

The Organisation for Economic Co-operation and Development (OECD) today announced improved projections for the growth of the Brazilian economy this year and in 2022. At the same time it warned of risks in the event of persistent delays in covid-19 vaccination. The estimate is now for Brazil’s economy to grow 3.7% this year, or 1.1 percentage point more than the estimate made in December.

Source: Valor Investe

Market fears polarization after annulment of Lula’s convictions

The annulment of the convictions of former President Lula within the scope of Operation Car Wash, putting him back in the political game, has soured, once and for all, the mood in the market. On an already negative day for Brazilian assets, the decision by Justice Edson Fachin, of the Federal Supreme Court (STF), took investors by surprise and aggravated the search for protection against the risk of a new scenario of political polarization and additional doses of populist measures by the Bolsonaro administration. Benchmark stock index Ibovespa fell 3.98%.

Source: Valor International

SP’s GDP growth expectation in 2021 is just above 5%

According to the Secretary of Finance and Planning, Henrique Meirelles. According to him, the projection is that the State’s GDP will grow this year a little above 5%. He recalled that the initial GDP expectations for the country were for a growth of 3.5% in 2021, but the evolution of the pandemic should hurt the GDP in the first quarter.

Source: Valor Investe

With fall in GDP, economy reaches level of early 2019

With the 4.1% drop in 2020 in the Gross Domestic Product (GDP), the sum of all goods and services produced in the country, Brazil reached, at the end of last year, the level equivalent to that recorded between the end of 2018 and the beginning of 2019. In comparison with the last quarter of 2019, the pre-pandemic period, the economy was 1.2% below that period.

Source: Money Times

Revenues estimate for the Budget rises to almost $286 bn

The Joint Budget Committee (CMO) changed the revenue estimate for the Union Budget in 2021 and added R$ 35.3 billion ($6.3 bn) to the proposal presented by the federal government in the Annual Budget Bill (Ploa) this year. With the changes, the resource forecast for the primary revenue of the Executive increases 2.3%, to R$ 1.595 trillion ($286 bn).

Source: Correio Braziliense

Union bailout to states due to pandemic was $13.5 bn in 2020

The Union’s bailout of the states due to the pandemic of Covid-19 added up to R$ 76.9 billion ($13.5 bn) in 2020, according to data from the National Treasury. The values include direct transfers to the cash of governors (R$37 billion, $6.5 bn), as well as the recomposition of the Participation Fund of States (R$7.4 billion, $1.3 bn) and the temporary suspension of debts with the federal government (R$32.5 billion, $5.7 bn).

Source: G1 Economia

Unemployment drops to 13.9% in 4th quarter

Unemployment in Brazil had the third consecutive drop and was 13.9% in the quarter ended in December, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). However, 13.9 million Brazilians were still unemployed. Already the average unemployment rate in 2020 was 13.5%, the highest in the series that began in 2012. In 2019, it was 11.9%.

Source: G1 Economia