09/24/2024 – 13:57
Former Finance Minister Joaquim Levy assesses the bimonthly revenue and expenditure report released on Monday, the 23rd, by the Finance Ministry as positive. For Levy, the document is “interesting” and brings “news”.
“There are a number of indicators that compliance with the framework is increasingly credible. I think yesterday’s announcement was very interesting, it brought some news. He replaced uncertain revenues from Carf with more certain revenues, resulting from a long negotiation in Congress. Now we know how the payroll tax relief will be compensated. At least for now. Later on, we will see how it evolves.”
Levy also highlighted Vice President Geraldo Alckmin’s speech guaranteeing compliance with the fiscal framework. “Alckmin, as a fiscal officer, understands. So there is great cohesion for us to continue on the path of security.” And he drew attention to positive decisions in the report – some “subtle”, pointing out, for example, the reduction in personnel expenses to accommodate other expenses.
The former Finance Minister participated this Tuesday, the 24th, in the Brazil Conference, an event promoted by Banco Safra, in São Paulo, which was attended by the president of the Central Bank, Roberto Campos Neto, the governor of São Paulo, Tarcisio de Freitas, of Goiás, Ronaldo Caiado, of Paraná, Ratinho Jr., and businessmen from large companies in different sectors. Today, Levy is the director of Economic Strategy and Market Relations at Safra.
“We are here with businesspeople, all sectors are extremely confident. We see an economy that is growing, employment is doing well, inflation is low. And challenges arise every day. We have fiscal challenges that we have to face with serenity and clarity.”
For the former minister, the government is doing what it can. “The Ministry of Finance has been very consistent, has had a lot of dialogue with Congress, ensuring that things move forward.”
“The good problem”
Regarding the minutes of the Central Bank released today, with details of the Economic Policy Committee (Copom) meeting, Levy assessed that it was “cautious” and highlighted the use of the term “diligent” in the document.
“The president [do BC] spoke of the good news of the strong labor market, but it did not translate into price pressures. There is an interesting expression there in the minutes where they say they will continue to ‘diligently’ monitor how the economy will perform before taking further steps.”
Therefore, the former minister believes that the market is rushing to bet on a 3 percentage point increase in interest rates. “That is not what the Central Bank is saying. It will raise rates after diligently analyzing how things are going, including abroad, and then it will decide little by little. There is time for that,” he said.
He once again highlights the good moment of the economy, with inflation under control and employment “doing well”, even pointing to what he called the “good problem” of the economy, which is the buoyant job market.
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