Good morning! We’re covering today Brazil’s GDP numbers (and what is behind their increase). Medical cannabis legalized in Brazil, with restrictions. And a new white whale on Operation Car Wash’s radar. (This newsletter is for platinum subscribers only. Become one now!)
GDP numbers: glass half-full or half-empty?
As we anticipated in yesterday’s Daily Briefing, Brazil’s official Q3 GDP numbers showed slow but continuous growth. The economy expanded 0.6 percent over the last quarter—meaning that if growth were to be 0 between October and December, Brazil’s GPD would have grown by 1 percent in 2019.
Why it matters. There are many reasons to celebrate, such as the rise in family consumption (which accounts for two-thirds of the GDP), a 2-percent hike in investments, and a second-straight positive quarter for industry.
Between the lines. Brazil has registered positive GDP results in nine of the 11 quarters since the end of the recession, in Q1 2017. The latest indicators suggest that consumers and companies alike are becoming more confident in the Brazilian economy and that it could properly kickstart soon.
New predictions. Many banks and consultancies revised their predictions for Brazil’s growth this year. Goldman Sachs pushed it up from 1 to 1.2...