State-owned companies’ profits up by 132%
Combined, Brazil’s major state-owned companies posted BRL 74.3bn in profits last year—the best result in 8 years, and a 132% jump from 2017. According to government officials, the results are linked to cost-saving measures and divestment policies—which should be increased from now on.
Economy Minister Paulo Guedes has promised a massive wave of privatizations of publicly-owned assets—including companies “no one even suspects.” Front of the queue is the privatization of Eletrobras, Brazil’s energy production and distribution company. A model has yet to be found. Docks companies are also on the list, as are many subsidiaries of public banks.
Stock market underperforming
Last year, Brazil’s stock exchange was the world’s most dynamic and lucrative. In 2019, however, the Ibovespa index is among the world’s worst performers, even among emerging markets. On a list of 15 global markets, only Argentina and Turkey’s indexes fared worse.