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1. Financial market raises Brazil’s GDP growth forecast to 1.9% in 2024

The financial market has raised its forecast for Brazil’s Gross Domestic Product (GDP) growth in 2024 to 1.9%, according to the Boletim Focus released by the Central Bank. This is the third consecutive upward revision, reflecting growing optimism about the country’s economic performance. In addition to GDP, the Boletim Focus also included adjustments to projections for inflation, the exchange rate, and the Selic interest rate, indicating an economic scenario under constant review.

Despite the optimism surrounding GDP growth, inflation projections have also seen a slight increase, which could influence the Central Bank’s decisions regarding the Selic rate. The market remains attentive to economic indicators and government policies to adjust its expectations and investment strategies.

Agência Brasil: Mercado estima PIB de 1,9% este ano, revela boletim Focus

2. Amid trade tensions, Finland and Sweden support EU-Mercosur agreement

Finland and Sweden have expressed their support for the implementation of the free trade agreement between the European Union (EU) and Mercosur, in response to tariffs imposed by U.S. President Donald Trump. Both countries see the agreement as an opportunity to strengthen trade relations with South America and diversify their sources of imports, thereby reducing dependence on more protectionist markets. The joint statement reflects growing interest in finalizing the agreement, which still faces internal challenges and resistance within some EU member states.

The pressure from Finland and Sweden comes at a time of global trade uncertainty, with the possibility of new tariffs and barriers being introduced by various countries. The implementation of the EU-Mercosur agreement could boost economic growth for both blocs, while also sending a strong signal of commitment to free trade and international cooperation. The expectation is that the joint statement will encourage other EU countries to support the agreement’s ratification.

Exame: Finlândia e Suécia pedem implementação do acordo UE-Mercosul em face das tarifas de Trump

3. Retail sales grow 0.5% in February, according to IBGE

Brazilian retail sales grew by 0.5% in February, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). This positive result signals a gradual recovery in the sector, driven by factors such as improved credit conditions and a stable labor market. The retail performance in February contributes to a more optimistic outlook for Brazil’s economy in the first quarter of the year.

Despite overall growth, not all retail sectors performed equally. Some sectors, such as clothing and footwear, posted more modest results, while others, including furniture and household appliances, showed stronger performance.

Valor Econômico: Vendas no varejo sobem 0,5% em fevereiro e registram novo patamar recorde, mostra IBGE

4. Service sector grows 0.8% in February, continuing recovery trend

Brazil’s service sector recorded a 0.8% growth from January to February, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). This positive result indicates a continued recovery in the sector, driven by increased demand for information and communication technology services, as well as professional and administrative services. The service sector’s performance in February contributes to a more favorable outlook for the Brazilian economy as a whole.

Despite the overall growth, it’s important to note that not all sectors of the service sector performed equally. Some areas, such as services provided to households, are still facing challenges in returning to pre-pandemic levels.

Agência Brasil: Setor de Serviços Apresenta Crescimento de 0,8% em Fevereiro, Mantendo Trajetória de Recuperação

5. Brazilian car exports rise 42%, showing the sector is strengthening

Brazilian car exports have seen a significant increase, growing 42% over the past year, according to data from the National Association of Motor Vehicle Manufacturers (Anfavea). This strong performance reflects the rising international demand for vehicles made in Brazil, driven by factors such as competitive pricing and product quality. The surge in exports contributes to strengthening the country’s trade balance and generating jobs within the automotive sector.

Despite the positive outlook, the Brazilian automotive industry still faces challenges, including the need to modernize infrastructure and adopt new technologies to meet global market demands. The continued growth of exports will depend on the industry’s ability to invest in innovation and enhance its competitiveness. The government also plays a key role in fostering a business-friendly environment and promoting the image of Brazilian products abroad.

G1: Produção de veículos tem alta de 8% no 1º trimestre, com destaque para exportações para Argentina