March 8th, 2024


1. Brazilian GDP grew by 2.9% in 2023

The Brazilian Gross Domestic Product (GDP) grew by 2.9% in 2023, according to data from the Brazilian Institute of Geography and Statistics (IBGE).

Economic activity was driven by a historic grain harvest. With the record performance of soybean and corn production, agriculture rose 15.1% in 2023. The industrial sector grew by 1.6%, and the service sector by 2.4%.

According to IBGE, the GDP ended 2023 at BRL 10.9 trillion. The GDP per capita was BRL 50,193.72 in 2023, a 2.2% increase compared to the previous year.

IBGE: PIB cresce 2,9% em 2023 e fecha o ano em R$ 10,9 trilhões
G1: PIB do Brasil cresce 2,9% em 2023, diz IBGE

2. Lula submits a bill regulating the work of ride-share app drivers to Congress

On Thursday (March 7), during an event at the official presidential office, President Lula submitted to Congress a bill regulating the work of ride-share app drivers.

The bill sets a minimum wage and a 7.5% pension contribution to the National Social Security Institute (INSS). App drivers will have to receive R$ 32.90 per hour, resulting in a minimum wage of R$ 1,412 per month.

Members of the opposition criticized the bill, accusing the government of going against free enterprise. During the event, Lula said he plans to regulate food delivery apps and will discuss the issue with the companies that offer this service.

Câmara dos Deputados: Congresso Nacional começa a discutir regulamentação do trabalho de motoristas de aplicativo

3. Administration removes highly processed foods from basic food package

The administration published a decree creating the new basic food package in Brazil. The decree, signed by President Lula, favors fresh and minimally processed foods and excludes highly processed items. The rule will guide public policies related to food.

The decree is also important because the national basic food basket will be regulated by the National Congress within the scope of tax reform. Food items on the list will be taxed differently. The food industry is wary of these measures.

G1: Governo publica lista com exemplos de alimentos que compõem a nova cesta básica; confira

4. During G20, Brazil calls for collective efforts to tax the rich globally

During a meeting of G20 Finance Ministers – currently presided over by Brazil – Brazilian minister Fernando Haddad advocated for a redefinition of the globalization model, joint efforts to end poverty and climate change, and the creation of a global minimum tax for the wealthy.

In the tax context, Haddad stated that global minimum taxation on wealth could constitute a third pillar in international tax cooperation. The decision would also involve the taxation of non-physical assets and a global minimum tax for large multinational companies.

UOL: Brasil pede que G20 trabalhe para criar taxação ‘justa’ para bilionários

5. BNDES shares 2023 balance sheet, with increase in credit offers and decrease in net profit

On Monday, the Brazilian Development Bank (BNDES), one of the main development banks in Latin America, shared its 2023 balance sheet.

One of the main highlights was the increase in the volume of credit offered. In 2023, the BNDES approved R$218.5 billion in credit, an increase of 44% over 2022. Furthermore, the balance showed that the biggest beneficiaries of credit in 2023 were micro, small, and medium-sized companies (MPMEs), with growth of 53% last year compared to 2022. Bank representatives explained that among the reasons for the increase among MPMEs is the use of credit unions.

CNN Brasil: BNDES tem lucro de R$ 5,3 bi no 4º tri, alta de 55%; inadimplência recua a 0,01%