Finance minister: Brazil left worst recession in history

Finance Minister Henrique Meirelles said that Brazil has left “the worst recession in its history” and that now is the time for investing in the country. The statement was made today (Sep. 20) at the seminar Investment Opportunities in Brazil, held by newspaper Financial Times, in New York.

“Now is the moment when the economy is going to start growing, but prices still don't reflect this resumption,” said the minister. Meirelles mentioned the approval of the labor reform, the establishment of the public spending cap, and the introduction of a new, more market-oriented interest rate by the National Social and Economic Development Bank (BNDES) as factors that have improved the country's economic landscape. Also, the government is intent on approving the pension reform, he said.

“Economic actors are convinced we're on the right track and that the economy is likely to keep growing,” he said.

Last week, Meirelles had lunch in his house with deputies from his party, the Social Democratic Party (PSD). He was invited to run for president in the next elections. He denied having accepted it.

Piecemeal recovery

In the same seminar, Central Bank President Ilan Goldfajn said Brazil's economic growth is recovering gradually after two years of recession. The boost towards a recovery stems from an increase in consumption, he argued, driven by higher income from “strong disinflation.” “The next step for sustainable and balanced growth is will come from new investments,” he said.

In August, the federal government announced airport concessions, highways, and port terminals, as well as privatizations, like the Casa da Moeda, Brazil's mint.

Translated by Fabrício Ferreira

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