Brazil experiencing a favourable period, says finance minister
Brazil is experiencing a favourable period with decreasing inflation, Finance Minister Henrique Meirelles said on Wednesday (Jan. 18). Commenting on Brazil's appearance at the World Economic Forum in Davos, Switzerland, he recalled the situation of the country six months ago:
“In the middle of last year, we took over the lead amid two-digit inflation, and we've been carrying out a fiscal adjustment effort whose impacts will be felt on inflation as well because the government is spending less, which reduces the amount of money in the economy.”
According to Meirelles, the Central Bank is making a successful move to cut the benchmark interest rate, and this will help the country's economy grow again in 2017 by reducing the cost of credit.
“Firstly, because it results from decreasing inflation. This is good for everyone. Secondly, because lower interest will enable us to make credit increasingly cheaper, which will make consumption and investment easier and cheaper,” he went on.
The minister said there is a shared sentiment that the economy will grow again this year, and that this could begin to happen later this quarter.
“We all agree that Brazil's economy will grow in 2017 and this will lead to more jobs being created. The economy will begin to grow as early as this quarter. The unemployment rate is going to fall over the year, especially in the second half,” he said.
Structural reforms
Meirelles maintained his claims that the interest of foreign investors in Brazil was revived as the government approved a cap for public spending and submitted a pension reform to Congress. He also cited measures to cut red tape and microeconomic reforms announced at the end of last year as some of the factors encouraging foreign investors to put their money in the country.
“All of these measures have drawn a lot of interest and we've been getting many questions from investors [in Davos],” he said, adding that businesses and investors have declared plans to invest in Brazil “or already have investments and are planning to invest substantially more. I think Brazil is heading in the right direction.”
“I think Brazil does stands out in terms of opportunity and world investments, mainly because it is making essential reforms and at the same time, its is coming out of a recession and entering a period of growth,” the minister concluded.
Translated by Mayra Borges
Fonte: Brazil experiencing a favourable period, says finance minister
