The outlook for 2020 is favorable. Domestic demand should power the expansion, driven by improving economic sentiment and looser monetary policy. Conversely, fiscal tightening will dampen growth, while the external sector will likely remain lackluster. Delayed reform efforts ahead of local elections in October represents a risk to the outlook. FocusEconomics analysts project growth of 2.2% in 2020, which is unchanged from last month’s estimate. In 2021, growth is seen accelerating to 2.5%.
SAO PAULO--Brazil recorded a current-account deficit of $11.9 billion in January, compared with a deficit of $5.7 billion in December, the country's central bank said Friday.
The 12-month current-account deficit reached $52.3 billion in January, from $50.8 billion the month before, the bank said. The 12-month current-account deficit was equal to 2.85% of gross domestic product, versus 2.76% of GDP reported for the previous month.
Net foreign direct investment reached $5.6 billion in January, down from $9.4 billion in December, with the 12-month figure at $78.4 billion, down from $78.6 billion in December, the bank said. RTRS
Fitch Affirms Petrobras' IDRs at 'BB-'; Outlook Stable
21 FEB 2020 10:22 AM ET
Fitch Ratings - Chicago - 21 February 2020:
Fitch Ratings has affirmed the long-term foreign currency and local currency Issuer Default Ratings (IDRs) and outstanding debt ratings of Petroleo Brasileiro S.A. (Petrobras) at 'BB-'. The National Scale rating has been affirmed at 'AA(bra)'. The Rating Outlook is Stable.
Fitch has also revised its assessment of Petrobras' stand-alone credit profile (SCP) to 'bbb' from 'bb+', reflecting the company's improving capital structure. The Stable Outlook for Petrobras's foreign currency and local currency long-term IDRs reflects the same Outlook for Brazil's sovereign rating.
Petrobras' ratings are capped by Brazil's sovereign ratings (BB-/Stable) due to the government's strong ownership and potential control, and the company's strategic importance to the country. Petrobras' dominant market share in the supply of liquid fuels in Brazil coupled with its large hydrocarbon production footprint in the country exposes the company to government intervention through pricing policies and investment strategies. Petrobras' ratings reflect the very strong support incentives Brazil has toward the company as a result of its strategic importance for the country. Fitch considers the linkage between Petrobras and the government to be strong as a result of the Brazilian government's majority ownership and control of the company, as well as the evidence of a strong support track record.