- New Government - GDP - Economy - Banking Sector - Government Policies - Corruption - Trade – Canada and Brazil

1. Government Policies – Brazil
– May 2016
By: Paul Young, CPA, CGA

2. • This presentation is on perspective when it comes to Brazil

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. Agenda
- New Government
- GDP
- Economy
- Banking Sector
- Government Policies
- Corruption
- Trade – Canada and Brazil

5. Brazilian Government
• Brazil's interim President Michel Temer called on his country to rally behind his government of "national
salvation," hours after the Senate voted to suspend and put on trial his leftist predecessor, Dilma
Rousseff, for breaking budget laws.
• Temer, a 75-year-old centrist now moving to steer Latin America's biggest country toward more market-friendly
policies, told Brazilians to have "confidence" they would overcome an ongoing crisis sparked by a deep economic
recession, political volatility and a sprawling corruption scandal.
• "It is urgent we calm the nation and unite Brazil," he said, after a signing ceremony for his incoming cabinet. "Political
parties, leaders, organizations and the Brazilian people will cooperate to pull the country from this grave crisis.“
• Accusation against Roussef
• Acccused of using state-controlled banks to finance popular social programs without revealing she was doing so.
• Alarm bells started ringing over her government’s creative accounting in 2013.
• A prime example is a flagship program for Rousseff’s government called the Bolsa Familia, or Family Allowance – in
which the government gives cash to poor Brazilian families, provided they send their children to school and ensure
they get vaccinations.
• Typically, authorities give the money to a bank, which distributes it to families. The bank started complaining from
2013 that it wasn’t getting regular payments from the government and was having to use its own money to make the
payments. In Portuguese, this is called “pedaling.” Actually, it was more like running up a giant overdraft. In 2014, the
problem got worse. There were tens of billions of dollars in late payments for programs like these that the banks were
left paying for.

6. Brazil - GDP
• Brazil’s economy will contract more than
previously forecast and is heading for the
deepest recession since at least 1901 as
economic activity and confidence sink amid a
political crisis, a survey of analysts showed.
• Latin America’s largest economy will shrink 2.95
percent this year, according to the weekly
central bank poll of about 100 economists,
versus a prior estimate of a 2.81 percent
contraction. Analysts lowered their 2016
growth forecast for 13 straight weeks and
estimate the economy contracted 3.71 percent
last year.
• Brazil’s policy makers are struggling to control
the fastest inflation in 12 years without further
hamstringing a weak economy. Finance Minister
Nelson Barbosa, who took the job in December,
has faced renewed pressure to moderate
austerity proposals aimed at bolstering public
accounts and avoiding further credit
downgrades. Impeachment proceedings and an
expanding corruption scandal have also been
hindering approval of economic policies in
Congress.

7. Brazil Economy

8. Brazil Budget Deficit/Debt
• Brazil recorded the largest-ever
primary budget gap in 12 months
through February as a two-year
economic recession sapped tax
collection while expenses grew
further.
• The deficit before interest payments,
which includes results of states,
municipalities and government-
owned companies, reached 125.14
billion reais ($35 billion) in the 12-
month period, or a record 2.11
percent of gross domestic product,
the central bank said Wednesday.

9. Brazil Debt to GDP

10. Brazil Economy

11. Government Policies
• FDI (Foreign Direct Investment)
• Foreign direct investment (FDI) into Brazil boomed over the period 2009-2011, but
has been slowing down ever since. After reaching USD 64 billion in 2013, FDI inflows
to Brazil declined to USD 62 billion in 2014 and again to USD 56 billion in 2015, a 23%
decrease on the previous year. However, Brazil remains the largest recipient of FDI in
Latin America and the fifth largest recipient in the world. The country is currently the
fourth largest investor in emerging markets and the largest investor in Latin America.
• Inflation
• Consumer prices are steady at 9%
• Tax Policies
• Corporate Tax 15%
• Consumption tax 15%

12. Government Corruption

13. Canada and Brazil
• Although the total value of two-way trade is not large, Brazil is one of Canada’s most important trading partners in the Americas. In 2009,
Canada’s bilateral merchandise trade with Brazil totalled $4.2 billion, consisting of $1.6 billion in Canadian exports to, and $2.6 billion in imports
from, Brazil.
• Brazil is Canada’s second-largest export destination in Latin America (behind Mexico) and Canada’s 15th-largest export destination worldwide.
Brazil is Canada’s third-largest source of imports in Latin America and 16th-largest source of imports worldwide.
• Canada’s trade relationship with Brazil is expanding. Since 2004, Canada’s trade with Brazil has grown more rapidly than its trade worldwide,
especially in respect of exports. Notwithstanding the recession-induced decline in trade in 2009, exports to Brazil have grown by nearly 11% per
year over the past five years (2004-2009).
• At the provincial level, Quebec is the largest exporter to Brazil, followed by Ontario and British Columbia. In 2009, Quebec exported $498 million
in goods to Brazil compared to $369 million for Ontario and $254 million for BC. Prince Edward Island and Manitoba have seen the fastest growth
in exports to Brazil over the past five years. From 2004 to 2009, average export growth from PEI was 57% per year, and from Manitoba was 32%
annually.

14. Sources
• Contact: paul_young_cga@Hotmail.com
• Other links
• Socialism - https://www.youtube.com/watch?v=fhk2b97BYKU