Brazil

Enter a keyword
Brazil's government debt as a share of gross domestic product fell to 78.5% in March, the lowest level in almost two years, with improved revenues in states and municipalities leading to a new primary surplus for the month, Reuters reported. That compares with a gross debt of 79.2% of GDP in February, to the best result since April 2020 (78.4%), when the country was beginning to be hit by the coronavirus pandemic. Booming revenue, helped by a surge in commodities, has lifted the government's budget, while expenditures have not grown at the same pace due to a constitutional spending cap.
Read more
Services activity in Brazil rose more than expected in March and at a record pace for the month, official figures showed on Thursday, marking a strong recovery from the severe downturn caused by the COVID pandemic, Reuters reported. Services activity increased 1.7% in March from February, more than double the 0.7% growth expected by economists according to a Reuters poll, reaching its highest level since May 2015, the government statistics agency IBGE reported. That put the sector 7.2% above the level of February 2020, before the onset of the pandemic.
Read more
Latin American central banks will likely extend their monetary tightening campaigns beyond what was originally expected after inflation surged past forecasts in April, with steep increases in food and fuel costs stinging policy makers, Bloomberg News reported. Brazil’s consumer prices rose 12.13% from a year prior according to data released Wednesday, the fastest pace in nearly two decades and also above the 12.06% median estimate in a Bloomberg survey. Headline inflation also topped forecasts in Peru, Colombia and Chile in the same month, as did the closely-watched core index in Mexico.
Read more
Retail sales in Brazil rose more than expected in March, the third straight monthly gain, despite double-digit inflation in Latin America's largest economy, official figures showed on Tuesday, Reuters reported. According to government statistics agency IBGE, sales grew 1% in March from February, more than the 0.4% increase forecast in a Reuters poll of economists. Six of the eight activities surveyed recorded growth, with computer and communication office equipment and supplies gaining 13.9%.
Read more
Industrial production in Brazil rose in March, but ended the first quarter with a negative print, highlighting the challenges for the sector amid problems in global chains and a domestic scenario marked by high interest rates and inflation, Reuters reported. Industrial output grew 0.3% in March from February, government statistics agency IBGE said on Tuesday, slightly above the 0.2% increase projected in a Reuters poll of economists. Still, it stood 2.1% below the level in February 2020, before the onset of the pandemic, the agency said.
Read more
Creditors of Brazilian miner Samarco Mineracao SA, a joint venture of Vale SA and BHP Billiton Ltd, on Monday rejected the debt restructuring plan presented by the company in an online creditors assembly, Reuters reported. Creditors are expected to present an alternative plan for the debt restructuring within 30 days. Representatives of 99.3% of unsecured credits rejected the plan, while smaller creditors in different classes voted favorable to the company's plan.
Read more
Brazilian Economy Minister Paulo Guedes said on Friday that the federal government plans to create a poverty eradication fund that would be fed from the sale of public assets, Reuters reported. Speaking at a presidential event, he mentioned plans of creating "Fundo Brasil," comprising 1 trillion reais ($210.51 billion) in real state assets and 1 trillion reais in shares of state-owned companies.
Read more
Creditors of Brazilian miner Samarco Mineracao SA have suspended their assembly to reconvene on April 1 after the company presented a new restructuring plan on Thursday, Reuters reported. Samarco, a joint venture between Vale SA and BHP Group PLC, changed its restructuring plan to offer a new alternative to pay creditors, hybrid bonds that will distribute part of Samarco's cash flow. The company did not change other conditions in the plan, such as the 75% haircut over the bonds face value.
Read more
Brazil's central bank announced tougher rules for fintechs on Friday, saying that payment institutions will be subject to regulations based on their size and complexity and raising standards for required capital, Reuters reported. The new framework, which will start taking effect in January 2023 with full implementation by January 2025, will extend the proportionality of regulatory requirements currently used for conglomerates of financial institutions to include financial conglomerates led by payment institutions.
Read more
Brazil's government is planning to allow port costs to be excluded from tax calculations to lower the cost of imports, three Economy Ministry sources told Reuters, in a measure backed by the country's industry lobby. At the same time the government is mulling cutting the tax levied on shipping freight, two of the officials said. The moves are prompted by the surge in commodity prices and higher shipping costs caused by the war in Ukraine.
Read more