Fall in the dollar exchange rate explains good economic performance

After the last month of the first half of 2023, economic indicators are favorable and point to a good performance, with low inflation, lower interest rates and a recovering global economy. The reduction in the unemployment rate and the fall in the dollar exchange rate are the main reasons for this scenario, according to João Ricardo Tonin, economist at FoodCo.

According to the IBGE, in the second half of 2023, Brazil reached the mark of 8% of the unemployed population, the lowest rate in nine years. Tonin explains that, with more people employed, there is more income in circulation, which, when combined with the drop in inflation, improves the purchasing power of families.

The IPCA — Extended National Consumer Price Index — projected for the end of the year is 4.9%, while the GPM is at -2.93%. For the economist, the reduction in inflation is linked to the drop in the dollar exchange rate, which reached R$4.72. Tonin explains that, as a result, imported inputs become cheaper, which can increase companies’ profit margins and help them to offer more competitive prices.

“Right now, it is important to be aware of opportunities. With more competitive input prices, we cannot afford to keep high inventories. We must look for new suppliers, to guarantee inputs with more competitive prices. It’s time to focus on improving the profit margin, creating a solid base to calmly take advantage of opportunities that arise in the second half. Keep your eyes open and be prepared for what’s to come”, concludes Tonin.

The FoodCo. with the complete and audio analysis of the economist João Ricardo Tonin is an exclusive weekly content for the platform’s subscribers. FoodCo. is the largest community of bar and restaurant owners in Brazil. There are more than 13,000 entrepreneurs in the sector gathered in a network of knowledge and networking, with access to essential content for those who undertake food outside the home.