1. Service sector grows by 1.7% in June, a record high

The service sector in Brazil recorded significant growth in June, surpassing financial market expectations and reaching a historic new high. The volume of services provided increased by 1.7% compared to May, while analysts had predicted a more modest rise of 0.9%. The data was released on Tuesday (13) by the Brazilian Institute of Geography and Statistics (IBGE).

This is the most significant increase since December 2022 (2.7%) and it means the volume of services is 0.5% higher than what was registered in December last year, when there was a peak. The result underscores the importance of services to the Brazilian economy, representing the largest share of the Gross Domestic Product (GDP).

Veja: Setor de serviços avança 1,7% em junho e atinge patamar recorde

2. Market raises inflation forecast and maintains GDP projection for 2024

The financial market has raised its expectations for inflation in 2024 while maintaining its projection for the growth of Brazil’s Gross Domestic Product (GDP). This information is part of the Focus Report released by the Central Bank on Monday (12).

For the fourth consecutive month, the average estimate for the Broad Consumer Price Index (IPCA) in 2024 increased, rising from 4.12% to 4.20%. This value is approaching the upper limit of the inflation target for this year, set at 4.5%. The report, which gathers projections from economists, also revealed that the median of expectations for the 2024 IPCA went from 4.19% to 4.22%, considering the last 68 projections.

MoneyTimes: Economistas elevam projeção para a inflação de 2024 a 4,20%

3. Brazil aims to lead tourism in South America 

On Monday (14), Brazil unveiled a new plan to become the top destination for foreign tourists in South America. The federal government published a decree that formalizes the National Tourism Plan from 2024 to 2027, setting ambitious goals for the sector. According to the International Tourism Organization, Colombia currently leads the ranking of countries that receive the most foreign visitors on the continent.

The plan aims to attract 8.1 million international visitors per year and generate an annual revenue of $8.1 billion from tourism. The strategy includes a range of actions, from professional training and productive integration in the tourism sector to investments in mobility, connectivity, and safety for visitors. National and international marketing campaigns will also be intensified to promote Brazil as a tourist destination.

Veja: Como o governo pretende fazer o Brasil liderar o turismo na América do Sul

4. 81% of Brazilians are concerned about sustainability

A recent survey by the National Confederation of Industry (CNI) reveals that sustainability has become a genuine concern for Brazilians. The study shows that 81% of consumers are more aware of the issue, indicating a significant shift in behavior towards the environment and sustainable practices.

This concern is not limited to consumers alone. The Brazilian industry is also increasingly engaged with the environmental cause. The same CNI survey reveals that 45% of brands have started requiring environmental certifications from their partners and suppliers before closing any deals.

G1: Energia limpa contribui com a sustentabilidade no Brasil

5. Technology moves BRL 754 billion in the country

Technology is emerging as a major driver for various Brazilian states to boost their economies and explore new avenues beyond their traditional strengths. While some regions, such as Santa Catarina and Pernambuco, already have established innovation ecosystems, others, like Rio de Janeiro, Rio Grande do Sul, and Paraná, are rapidly advancing in this direction.

This focus is justified by the sector’s consistent growth, even in challenging economic scenarios. In 2023, for instance, while industry and retail faced difficulties, the technology sector grew by 5.2% compared to the previous year, reaching a revenue of BRL 754.9 billion in Brazil, according to data from the Associação Catarinnse de Tecnolofia (ACATE). Ceará (7.8%), Santa Catarina (7.6%), and Paraná (5.5%) were the states that stood out the most last year in terms of technology revenue growth.

Exame: Tecnologia movimenta R$ 754 bilhões no Brasil; veja o ranking dos Estados