Denise Chrispim Marin
Following the Trump administration’s launch of tariffs on steel and aluminum, the director-general of the World Trade Organization (WTO), Roberto Azevêdo, spoke again with Global Finance, about the global body’s role and the expanding trade tiffs that could set off another worldwide economic collapse.
Brazil’s administration faces an approval rating of only 10.3% and the unpredictable course of corruption investigations. But president Michel Temer still has a major opportunity to get Congress this year to approve his ambitious and unpopular austerity reforms of social security, labor laws, and the opening of rural land and domestic airline sectors to foreign investors.
Foreign-currency bonds offer Argentina needed resources but come with heavy risks.
Latin American nations seeking fiscal fixes encounter a wide variety of factors beyond their control.
Brazil | Despite the optimistic expectations in 2009, when Rio de Janeiro was chosen to host the 2016 Summer Olympic Games, the competition in August is not likely to show Brazil in the best light.
Well known for his caution, Brazil Finance Minister Henrique Meirelles is well aware of the enormity of his nation’s fiscal hole. Brazil is likely to report a primary deficit of $36 billion this year, instead of the $6.8 billion surplus previously forecast.
Milestones | Brazil
In this time of recession, Brazil’s economy is becoming more agribusiness-oriented. The sector generated 23% of Brazilian GDP last year, after 21.4% in 2014, and accounted for 46.3% of total exports.
Brazil: The Banco Central do Brasil gave new Finance minister Nelson Barbosa a bit of help on January 20, when it decided to hold the short-term interest rate, the Selic, to 14.25%.
The axe fell on Brazil heading into 2016 as it suffered a downgrade to junk status by Fitch Ratings, heightening the air of crisis as the beleaguered nation grapples with political turmoil and recession.
Corporate Governance | Management
Selling the assets could improve BTG’s net worth by 20 billion reais ($5 billion).
Trends | Taxation
Brazil is well known in the global business sector for its tax complexity, heavy tax burden (around 35% of GDP) and high use of technology for tax collection. Not for nothing do Brazilians call their tax authority—Receita Federal do Brasil—“the Lion.”