Minister Paulo Guedes (Economy) said this Thursday (28) that Brazil is at the beginning of a cycle of economic growth, while the world economy has entered a synchronized slowdown.
The minister’s assessment clashes with market and multilateral institutions’ projections. The IMF (International Monetary Fund) projects a slowdown in the world economy from 3.2% growth this year to 2.9% next year. For Brazil, growth would go from 1.7% to 1.1% — worse than the global performance.
In an interview with Bloomberg TV’s Daybreak Australia program, Guedes said that the retraction of the US economy, which registered two consecutive quarters of decline, is a problem that, unfortunately, will continue for a long time, as the central banks of the central economies are far behind the yield curve in fighting inflation.
The minister, however, sees the country as one of the most prepared to face the moment, saying that the Brazilian currency was one of the ones that lost the least value against the dollar this year. “We’re resisting,” he said.
Asked about the situation of public accounts, Guedes said that Brazil is one of the few economies that are in fiscal balance, as it currently has a primary surplus.
Regarding the high prices of commodities, a factor that has helped in the growth of the economy and to increase the primary surplus, the minister said that inflation will last longer than imagined and that commodity prices will not fall, they will only stops rising for a while, emphasizing that Brazil has a very diversified economy.
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