According to Ipea, the good results are related to the reopening of Asian trade
The president of Ipea (Institute for Applied Economic Research), Luciana Servo, said on Friday (June 30, 2023) to EBC (Empresa Brasil de Comunicação) that, in the last 3 months, Brazil had gains in foreign trade, with the reopening of the Asian market, and in the income of the population, due to payments of social benefits.
The data are part of the Overview of the Conjuncture Letter, an analysis of the macroeconomic situation made by the agency, which will be released next Tuesday (4.July).
“We will have very good results and one of the data that this publication will bring is that we had gains in foreign trade. This means that we are selling more abroad. This is very good, because resources will enter Brazil and help us in the economic part”, said Luciana.
According to the president of Ipea, this gain was due to the reopening of the Chinese market after the pandemic and also due to the competitiveness of Brazil.
“China reopened its market after the pandemic. Also, Western economies are bouncing back and buying more from Brazil. But some economies left the market during the pandemic, such as soy and oil, and Brazil took the opportunity to win these markets in the competition”, he declared.
The document, which analyzes the most important topics of the macroeconomic scenario, will also bring an inflationary scenario below the previously projected. “We are seeing a slowdown in the inflationary process, with a reduction in administered prices, those controlled by public companies or regulatory agencies.”, said Luciana Servo.
“In this case, we had a lower than expected increase in fuel and electricity. As a result, the expected inflation for this period was lower than what we had initially projected. Both in the month and in the last 12 months“, continued.
“We are seeing a reduction in the IPCA [Índice de Preços ao Consumidor Amplo], used to readjust contracts, which is getting close to 5%. Before it was above 5.5%. We are also seeing it at the INPC [Índice Nacional de Preços ao Consumidor]affected by the drop in food prices”, he declared.
BASIC INTEREST RATE
Another point analyzed by the document is that the country’s current interest rate, currently at 13.75% per year, has made it difficult for families and companies to recover their purchasing power.
“In general terms, the results are positive, but we need to advance in our monetary policy, in addition to others, but mainly in monetary policy. [Avançar] in this discussion, how we are going to encourage a lower interest rate to be able to guarantee investment and guarantee greater consumption by families as well”, said the president of Ipea.
With information from Brazil Agency.
#Brazil #gains #foreign #trade #months