Uncertain Economic Outlook Challenges Strength of National Currency, According to Reuters Survey

Written by Bruno Teles

Published on 03/03/2023 at 17:30

Moeda nacional (Foto/divulgação)

Be the first to react!

The National Currency Is Proving Strong, Defying Growing Concerns About Economic Slowdown and Divergences Between the Government and the Central Bank.

According to a survey conducted by Reuters, with 19 currency specialists, this national currency hovers around 5.20 per dollar in recent months. However, expectations are that there will be an appreciation of the Real in the next year to 5.10 per dollar.

This estimate came after a weak period in the second quarter of 2022, thus easing concerns about volatility in the market during the electoral period. Despite fears about the stability of the national currency, it has been resilient and remains strong in the face of all challenges it faces. The dollar reached R$5.19 on Wednesday (1st), thus managing to maintain its appreciation.

Brazil is facing an economically unstable phase, according to warnings from analysts after a surge in activity due to inflationary spending. Edward Moya, senior market analyst at Oanda, stated that “concerns about growth will not disappear anytime soon” and there are major risks of additional monetary tightening by the Federal Reserve.

ARTICLE CONTINUES BELOW

The Brazilian Economy Grew 2.9% in 2022 But Fell 0.2% in the 4th Quarter.

Brazil’s GDP (Gross Domestic Product) closed the year 2022 with a cumulative increase of 2.9%, according to data released by IBGE (Brazilian Institute of Geography and Statistics). Despite the result being slightly below market estimates, the GDP turned negative in the last quarter of the year, with a decline of 0.2%.

Despite the acceleration in the first three quarters of 2022, the weaker performance in the last quarter is attributed to rising interest rates. According to the coordinator of National Accounts at IBGE, Rebeca Palis, “it was already expected that the economy, with these high interest rates, would slow down.”

The Brazilian economy recorded a cumulative growth of 5% in 2021 and 3.3% in 2020. The annual average during the Bolsonaro administration was 1.45%, while the governments of FHC (1995-2002), Lula (2003-2010), and Dilma-Temer (2011-2018) recorded 2.44%, 4.09%, and 0.71%, respectively.

The GDP totaled R$ 9.9 trillion in 2022 and the per capita GDP reached R$ 46,154. The economic stimulus measures adopted by the Bolsonaro government – such as the expansion of Auxílio Brasil and tax cuts on fuels – contributed to the economic growth. However, expectations for 2023 are for weaker performance due to the persistence of high interest rates.

Uncertain Economic Outlook Challenges Strength of National Currency, According to Reuters Survey

The National Currency Is Proving Strong, Defying Growing Concerns About Economic Slowdown and Divergences Between the Government and the Central Bank.

The Brazilian Economy Grew 2.9% in 2022 But Fell 0.2% in the 4th Quarter.

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

The river that “dies” in the desert never reaches the sea and yet gives life to one of Africa’s largest natural refuges in a truly impressive way.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Libya built over 4,000 kilometers of underground pipelines to bring water from the Sahara to coastal cities in a project that the government itself called the Eighth Wonder of the World.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Desert sand, previously discarded for being too smooth for concrete, becomes an ecological brick in the United Arab Emirates, dispensing with Portland cement, curing at room temperature, and attempting to transform dunes useless for construction into raw material for a new arid engineering.

Women farmers in Guatemala bring water to dry crops, create a plantain brand, and help restore mangroves.

Two helicopters, 41 people, and over 38 tons of bait were mobilized on a remote Pacific atoll to eliminate rats; five years later, native trees grew by 5,000%, seabirds gained habitat, and the rainforest began to regenerate.

A Japanese carpenter took five months to build a house by hand with screwless joints, knot-free cedar, and a finish that a 40-year veteran American contractor said he had never seen anything like anywhere in the world.

Driver’s license at 16, driving limit after midnight, and autonomous cars in Brazil: a bill that changes the Traffic Code advances in the Chamber and could transform the routine of young people, drivers, and new technologies on the streets

Florida dumped 2 million tires into the ocean near Fort Lauderdale to create an artificial reef, but hurricanes scattered the rubber across the seabed, and cleanup efforts initiated decades later are still trying to correct the environmental disaster without a guarantee of full coral recovery.

Uncertain Economic Outlook Challenges Strength of National Currency, According to Reuters Survey

The National Currency Is Proving Strong, Defying Growing Concerns About Economic Slowdown and Divergences Between the Government and the Central Bank.

The Brazilian Economy Grew 2.9% in 2022 But Fell 0.2% in the 4th Quarter.

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

The river that “dies” in the desert never reaches the sea and yet gives life to one of Africa’s largest natural refuges in a truly impressive way.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Libya built over 4,000 kilometers of underground pipelines to bring water from the Sahara to coastal cities in a project that the government itself called the Eighth Wonder of the World.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Desert sand, previously discarded for being too smooth for concrete, becomes an ecological brick in the United Arab Emirates, dispensing with Portland cement, curing at room temperature, and attempting to transform dunes useless for construction into raw material for a new arid engineering.

Oil inventories in the United States plummet by 8.263 million barrels in one week, a drop more than double the expected, while Cushing also declines and refineries increase operations to 96.7%.

From newspaper delivery boy at age 12 to owner of an industry with 215 people, Silmo de Ávila left the countryside, taught himself metallurgy, went bankrupt in 2019, and reemerged by selling kits online until he created machines for livestock in Brazilian agribusiness.

World Cup 2026 has fans turning living rooms into stadiums; purchases with Visa increase by 30% in Latin America, streaming surges by 34.6%, and electronics rise by 9.4%, revealing how the passion for football has turned into a race for bigger screens before the ball starts rolling.

China is no longer cheaper because of labor, but because it has entire cities built around a single product for 40 years, and this is something that Vietnam, India, and Mexico will never be able to replicate no matter how much they try.

Tilapia giant puts R$ 12 million on the table, inaugurates mega factory in Brazil, and will process up to 20 tons of fish per day, creating jobs and strengthening family farming.

Women farmers in Guatemala bring water to dry crops, create a plantain brand, and help restore mangroves.

Two helicopters, 41 people, and over 38 tons of bait were mobilized on a remote Pacific atoll to eliminate rats; five years later, native trees grew by 5,000%, seabirds gained habitat, and the rainforest began to regenerate.

A Japanese carpenter took five months to build a house by hand with screwless joints, knot-free cedar, and a finish that a 40-year veteran American contractor said he had never seen anything like anywhere in the world.

Driver’s license at 16, driving limit after midnight, and autonomous cars in Brazil: a bill that changes the Traffic Code advances in the Chamber and could transform the routine of young people, drivers, and new technologies on the streets

Florida dumped 2 million tires into the ocean near Fort Lauderdale to create an artificial reef, but hurricanes scattered the rubber across the seabed, and cleanup efforts initiated decades later are still trying to correct the environmental disaster without a guarantee of full coral recovery.