March 3rd, 2023


1. Brazilian GDP grew 2.9% in 2022 thanks to increased consumption post pandemic

The Brazilian Gross Domestic Product (GDP) grew 2.9% in 2022, according to the Brazilian Institute of Geography and Statistics (IBGE).

The services sector registered the most significant growth thanks to the so-called “reopening effect” – the increased number of customers returning to bars, restaurants, beauty salons, and tourism-related businesses after the pandemic. In terms of financial results, the Brazilian GDP was R$ 9.9 trillion in 2022, with an investment rate of 18.8%.

Despite the positive numbers, the 4th quarter of 2022 registered a 0.2% drop. Experts believe that some economic stimulus packages from 2022 were too short term and could harm the country’s growth in 2023.

G1: PIB do Brasil avança 2,9% em 2022, mesmo com 4º trimestre de queda 
CNN: Resultado do PIB é positivo, mas crescimento não é sustentável, diz economista 

2. Brazil ends 2022 with 9.3% unemployment rate

According to the Brazilian Institute of Geography and Statistics (IBGE), the Brazilian unemployment rate at the end of 2022 was 9.3%. This is the lowest rate since 2015, when only 8.6% of people were unemployed. Compared to 2021, when the rate was 13.2%, there was a 3.9 percentage point drop.

Data from the Continuous National Household Sample Survey (Continuous PNAD) shows that Brazil had around 10 million people unemployed in 2022, representing a 28% drop in comparison to the 13.9 million in the year before.

Even though the numbers are dropping, the number of people looking for work is 46.4% higher than in 2014, when the country had the smallest number of people out of work (6.8 million) ever registered by Continuous PNAD.

Valor: Desemprego cai para 9,3% em 2022, menor taxa desde 2015 
IBGE: Indicadores mostram queda no número de desempregados no Brasil em 2022 

3. Federal government resumes partial collection of fuel taxes

President Luiz Inácio Lula da Silva and his economy team decided to once again tax fuels. According to the administration, the tax exemption created by the Bolsonaro government in 2022 is an obstacle for funding social programs.

PIS, Cofins and Cide taxes are already being charged as of March. As a result, gasoline prices are expected to increase by 75%, while the price of ethanol will increase by 21%. Diesel will be tax-exempt until the end of the year.

To reduce the impact of taxes, Petrobras announced a fuel price reduction for distributors. According to experts, the resulting price of gasoline will be R$ 0.47 more per liter, while ethanol will cost R$ 0.02 more per liter.

Poder 360: Governo Lula cobrará R$ 0,47 de imposto sobre o litro da gasolina 
G1: Petrobras reduz preços de gasolina e diesel para distribuidoras

4. Government will tax online games to compensate for income tax correction

Aiming to compensate for the loss in revenue resulting from new income tax exemptions, the Brazilian government is planning to tax online games, said Economy Minister Fernando Haddad.

Haddad did not say which games would be taxed, but experts believe that online casinos and sports betting websites will probably be on the list. According to the minister, this tax revenue could generate billions for the Brazilian government, helping with the federal budget.

According to new income tax rules, workers who receive up to twice the minimum wage per month (R$ 2,640) will be tax exempt. The government estimates that their revenue will drop by R$ 3.2 billion in 2023 and R$ 6 billion in 2024. 

UOL: Governo tributará jogos eletrônicos para compensar correção da tabela do IR

5. United States reaffirms commitment to the Amazon Fund

On Tuesday (28th) US Special Presidential Envoy for Climate, John Kerry, met with Environment Minister Marina Silva to discuss the future of the Amazon Rainforest.

Visiting Brazil, John Kerry reaffirmed the United States’ commitment to collaborating with the Amazon Fund, adding that the US is currently discussing a multi-billion dollar contribution to the environment. Kerry also said the US will encourage private companies to invest in Brazil.

Created in 2008, during President Luiz Inácio Lula da Silva’s second term, the Amazon Fund is a program dedicated to protecting the sustainable use of the Amazon and to prevent, monitor, and fight deforestation through donations. The Fund is managed by the Brazilian Development Bank (BNDES), which collects donations and monitors the projects. 

G1: Ao lado de Marina, Kerry diz que os EUA estão comprometidos em colaborar com o Fundo Amazônia 
Metrópoles: Governo defende a Kerry que EUA doe ao menos US$ 1 bi para Fundo Amazônia