Category: Public policy

Information related to political affairs that have an impact on Brazil’s economic development.

Israeli factory "that draws water from the air" to be built in Brazil

Brazilian President Jair Bolsonaro announced the construction in Brazil of an Israeli factory that draws water from the air, in order to “cope with the lack of water in the northeast, desalination, artesian wells and the São Francisco River.” Technicians and officials of the Brazilian National Water Agency travelled to Israel at the end of last year to discuss a memorandum of understanding between the two countries on water resources, desalination and wastewater management.

Washington ready to help Brazil sell oil zones worth ca. $25.5bn

Donald Trump government is ready to help Brazil design more effective oil auctions, the U.S. secretary of energy Dan Brouillette said during a visit to Rio do Janeiro. In November, Brazil tried unsuccessfully to sell the rights to four offshore oil producing zones in a process that could have fetched some 106.5 billion reais ($25.5 billion) for Jair Bolsonaro’s government. Only two areas attracted bidders, both of which were consortia led by Petrobras.

Unemployment rate falls to 11% at end-2019

Brazil unemployment rate fell to 11% In the quarter ended in December last year, totalling 11.6 million people out of work, according to the National Continuous Survey of Household Samples (PNAD Contínua), published today by the Brazilian Institute of Geography and Statistics (IBGE). Compared to the same period last year, there was a reduction of 520 thousand unemployed people, when the rate was 11.6%. The increase in informality was the main driver of the recovery.

Petrobras readies sale of its fuel distributor unit stake

Brazil’s state-controlled oil company Petroleo Brasileiro SA has hired seven investment banks to sell a stake in its fuel distribution unit, Petrobras Distribuidora SA (BRDT3.SA). Petrobras is working to reduce its hefty debt load by selling some $20 billion-$30 billion in assets over the next five years, among them the 37.5% stake in BR Distribuidora about $3 billion.

Brazil adheres to foreigners agreement in public tenders

President Jair Bolsonaro said in his Tweeter account that he authorised Brazil’s entry into the Public Contracting Agreement (PA) of the World Trade Organization (WTO), which includes the United States, China, Japan and European countries. The agreement obliges its members to give equal conditions to foreign and national companies in public tenders in the areas of goods, services and infrastructure.

Jair Bolsonaro begins first official visit to India

Brasil President Jair Bolsonaro begins a four-day official visit to India. Trade between both countries during 2018-19 was worth $8.2 billion, including Indian exports of $3.8 billion and imports worth $4.4 million. Estimated 2018 Indian investments in Brazil were at $6 billion and Brazilian investments in India at $1 billion. Bilateral ties were elevated to a strategic partnership in 2006 and the two countries work closely at multilateral forums.

Brazil stocks at record high thanks to tax collection jump

The Bovespa rose as much as 0.8% to a record high of 119,342.140, while the real firmed about 0.2% to the dollar on Thursday after data showed a jump in federal tax collections to a five-year high in 2019, boosted by an increase in the corporate tax take. The data underpins optimism over the economy amid sweeping structural reforms and a rebound in economic growth.

Brazil's economy to grow 2.1% in 2020, Reuters poll

Brazil’s economy will slowly regain health this year, buoyed by firmer consumer spending and a boost from privatisations, dispelling fears of the kind of social unrest affecting other Latin American nations, a Reuters poll of economists showed. However, the survey’s projection of 2.1% is well short of the government’s 2.4% view.