The Minister of Economy, Paulo Guedes, said this Thursday (24) that the government will reduce the IPI (Tax on Industrialized Products) by 33%, expanding the initial cut of up to 25% announced in February.
Information on the value of the new reduction was anticipated by Reuters on Tuesday (23).
In a seminar promoted by Abrainc (Brazilian Association of Real Estate Developers), Guedes also said that the exchange rate in Brazil is “finally starting to go into place”. The American currency operated at R$ 4.83 reais this Thursday (24).
The minister pointed out that the country is temporarily fighting inflation, experiencing the “bitter taste” of the monetary tightening promoted by the Central Bank. He said he hopes that this interest rate shock will be brief and will not affect sectors sensitive to longer financing, such as real estate.
In the presentation, Guedes stated that he does not know how far the war in Ukraine will go, but said that the government is sure that it is prepared and will know how to face its effects.
For him, the forecast that Brazil will grow between 0.5% and 1.5% in 2022, even fighting inflation with “very high” interest rates, shows that the country has sustained growth that could be 2.5% or 3%.
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