How deglobalization could ripple across the economy. Major economic powers, including the U.S., are turning inward—a trend sped up by the pandemic and efforts to boost domestic industries. (Axios)

Yen surges after BOJ hints at policy shift, sending dollar lower. The yen staged its biggest one-day rally in almost a year on Thursday after Japanese monetary authorities offered a surprisingly clear hint at a shift in policy, while the euro pared some losses from earlier in the week. (Reuters)

Moody's cuts outlook for eight China banks on potential credit quality decline; downgrades Hong Kong too. Moody's Investors Service cut its outlook for eight Chinese banks to negative from stable on Wednesday, following an identical downgrade to China's government credit ratings a day earlier. (CNBC)

US jobless rate falls to lowest level since July. Jobs growth in the U.S. was stronger than expected last month, in part boosted as striking workers in Hollywood and the car industry returned to work. (BBC)

Putin to stand for fifth term as Russian president. Russian President Vladimir Putin has said he will stand again for a fifth term in office. (BBC)

As retailer REI’s troubles with employees continue, consumers back off. From a sales perspective, this year could be much different for the retailer—especially during this quarter, the holiday shopping season. (Al Jazeera)

Lula faces numerous challenges as Brazil assumes G20 presidency. As Brazil takes over the G20 presidency on December 1 from India, Luiz Inácio Lula da Silva will be challenged to fulfill his promise of holding up the interests of the global south amid two ongoing wars and a slowing global economy. (Al Jazeera)

Israel designates a safe zone in Gaza. Palestinians and aid groups say it offers little relief. Israel has designated a small slice of mostly undeveloped land along Gaza’s Mediterranean coast as a safe zone—a place where waves of people fleeing the war can find protection from airstrikes and receive humanitarian supplies for their families. (AP News)

Chinese leaders wrap up annual economic planning meeting with scant details on revving up growth. Chinese leaders agreed at an annual planning meeting to step up spending to help rev up the world’s second-largest economy, state media reported Friday, without giving details of any policy changes. (AP News)

 

Brazil Economy Rebounds Despite Anticipated Slow Economic Growth

Jamilex Gotay, editorial associate

The Brazilian economy unexpectedly rebounds in the third quarter, defying anticipated slow economic growth. Brazil’s economy unexpectedly rose 0.1% on quarter in Q3 2023, slowing sharply from a strong expansion in the first half of the year, but escaping a 0.2% contraction markets were forecasting, per Trading Economics. “The industrial sector rose 0.6%, with both manufacturing and mining adding 0.1% while utilities soared 3.6%. Services also gained 0.6%, with financial, insurance (1.3%) and real estate (1.3%) recording the biggest increases,” the report read.

This economic growth provides a momentary lift to President Luiz Inácio Lula da Silva and supporting his initiatives to improve Brazilian living standards. But as Brazil takes over The Group of Twenty presidency (G20), a forum for the world’s largest economies to coordinate key issues of global policy, on Dec. 1 from India, Lula will be challenged to fulfill his promise of holding up the interests of the global south amid two ongoing wars and a slowing global economy.

Despite these challenges, Lula is “forging ahead and has announced Brazil’s three key priorities as head of the G20: social inclusion and the fight against hunger, phasing out fossil fuels in favor of renewable energy and reforming global economic governance,” reads an article by Al Jazeera.

According to the World Bank Group, recurrent and rigid public spending still crowds out critical investments across sectors. “Brazil’s growth is expected to hover between 1.3 and 2.4% in the next four years, well below China, India and Turkey,” the report reads.

The 2023 poverty outlook looks promising, but faster job creation and stronger investments in human capital are needed to reduce striking inequalities. “A real increase in minimum wages, a major overhaul of the Bolsa Família, and the planned introduction of additional benefits for families with children are expected to drive poverty further down in 2023,” the World Bank Group report reads.

On Dec. 6, the World Bank Board of Directors approved a $300 million project to strengthen Brazil’s conditional cash transfer program Bolsa Familia. “The project aims to protect the income of poor families in Brazil with children from zero to 6 years of age, mitigating risks to their health and education prospects,” reads a press release from the World Bank Group. “We expect the project to benefit about 9 million children, from households eligible to the Bolsa Familia Program.”

Customers in Brazil have averaged 28 days beyond terms, with 46% of credit professionals saying payment delays have increased with up to 90-day payment terms, per the FCIB Credit and Collections Survey. The most common causes for payment delays are cashflow issues (80%) and inability to pay (40%).

What FCIB Credit and Collections Survey respondents are saying:  

• Expect payment delays. It is important to know customer's payment process to avoid misunderstandings or delays due to administrative issues.
• Consider opting for a mutually agreed upon but legally binding debt repayment agreement before pursuing legal collections on materially overdue accounts. It is typically better received by the customer and may result in faster payments.
• Obtain updated credit information. Look for owner and addresses verification, as changes are often not communicated by the customer. Know all you can about the customer. Pull a credit report for payment history and legal status and name verification.

The FCIB Credit and Collections Survey is now open. It covers Canada, Israel, Saudi Arabia and the UAE. You will earn ICEU/Participation credit for your input. Be sure to share the link with your credit and collections network.  

Week in Review Editorial Team:

Annacaroline Caruso, editor in chief

Jamilex Gotay, editorial associate

Kendall Payton, editorial associate