Economy Minister Paulo Guedes said at a meeting of G20 finance ministers and central bank chiefs that Brazil is ready for growth, sources say. The two-day hybrid (face-to-face and virtual) meeting ends this Friday.
The debate on the global economy, in which Mr. Guedes and the Brazilian central bank President Roberto Campos took part, was focused on strategies to end stimulus programs adopted to mitigate the crisis generated by the pandemic.
The group of the largest economies is concerned about having a careful exit from support measures. Most G20 countries agree with the reduction of stimulus and gradual normalization of interest rates, sources say.
The Brazilian stance has been to support a gradual, well-communicated normalization of interest rates, sources say.
Observers note that Mr. Guedes has stated in international meetings that many central banks are “asleep at the wheel,” that is, unaware of the dangers of inflation as they should be.
But the minister did not say so this time at the G20, which is chaired by Indonesia. He focused on certain global issues and tried to use Brazil as an example.
Mr. Guedes told his peers that Brazil began withdrawing stimulus last year as it moved forward with overhauls, followed through on the investment partnership program by attracting a record amount of infrastructure investment, advanced on the digital government agenda by seeking to reduce red tape and improving the business environment.
According to Mr. Guedes’s remarks, the result is a more resilient country that is ready to grow – he cited the “best primary result in almost a decade.”
In its latest survey, UBS projected that Brazil’s GDP will grow 0.6% this year, compared with 2.6% in Mexico, 3% in Russia, 3.2% in South Africa, 3.8% in Turkey, 5.4% in China and 8.2% in India.
Source: Valor International