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.

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

While cities spend fortunes patching potholes and tons of plastic become waste, the Netherlands transforms over 218,000 recycled cups into a modular bike path that can conceal drainage, cables, and pipes.

Empty beer bottle turns into sand, and the sand turns into concrete: an American city has discovered how to recycle glass locally using a solar-powered truck that crushes five tons of bottles per day in a local circular economy project.

While conventional electronic memories fail in low orbit after 30,000 rads, researchers from Georgia Tech have presented a ferroelectric NAND flash memory that remains stable up to 1 million rads, equivalent to 100 million consecutive X-rays.

BILLION-DOLLAR WAR! The USA has already lost more than 40 military aircraft in a confrontation against Iran, and the damage exceeds R$ 13 billion.

MIT shows that electric cars reduce emissions and can have competitive costs, even without relying solely on the electric grid.

The chocolate industry faces a new race for adaptation after stricter rules on cocoa content have entered the center of the economic debate, a movement that threatens to alter prices on shelves and accelerate historical changes in the Brazilian market.

The Egyptian company that saw value where many saw waste: TileGreen transforms discarded plastic bags into flooring more durable than cement, creates patented technology, and aims to recycle billions of packages to change the construction industry.

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.

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

While cities spend fortunes patching potholes and tons of plastic become waste, the Netherlands transforms over 218,000 recycled cups into a modular bike path that can conceal drainage, cables, and pipes.

Empty beer bottle turns into sand, and the sand turns into concrete: an American city has discovered how to recycle glass locally using a solar-powered truck that crushes five tons of bottles per day in a local circular economy project.

The chocolate industry faces a new race for adaptation after stricter rules on cocoa content have entered the center of the economic debate, a movement that threatens to alter prices on shelves and accelerate historical changes in the Brazilian market.

Attention: Bolsa Família app will undergo changes and the update will reach 19 million families

Brazil and the USA create a working group to negotiate tariffs and end Section 301 after a meeting between Lula and Trump at the White House, and representatives from both countries have already met via videoconference with a 30-day deadline.

Russia and China advance on a gas pipeline of more than 2,500 kilometers that will carry gas from Siberia to northern China; Putin’s visit to Beijing is also expected to result in an agreement to facilitate payments in ruble and yuan between the two countries.

End of the dream of home ownership: construction companies defrauded Brazilian families with Caixa’s money, received more than 80% of financing up to R$ 500,000, abandoned projects, left debts over R$ 200,000, and properties threatened with auction after suspicious reports.

While conventional electronic memories fail in low orbit after 30,000 rads, researchers from Georgia Tech have presented a ferroelectric NAND flash memory that remains stable up to 1 million rads, equivalent to 100 million consecutive X-rays.

BILLION-DOLLAR WAR! The USA has already lost more than 40 military aircraft in a confrontation against Iran, and the damage exceeds R$ 13 billion.

MIT shows that electric cars reduce emissions and can have competitive costs, even without relying solely on the electric grid.

The chocolate industry faces a new race for adaptation after stricter rules on cocoa content have entered the center of the economic debate, a movement that threatens to alter prices on shelves and accelerate historical changes in the Brazilian market.

The Egyptian company that saw value where many saw waste: TileGreen transforms discarded plastic bags into flooring more durable than cement, creates patented technology, and aims to recycle billions of packages to change the construction industry.