The Minister of Economy, Paulo Guedes, said this Wednesday, 17, that the external shocks resulting from the covid-19 pandemic and the war in Ukraine led the market to make wrong economic forecasts for Brazil. According to him, the initial error was made by the International Monetary Fund (IMF) and spread to other economists. The statements were made during the Tag Summit 2022.
Guedes recalled that the Brazilian economy fell 3.9% in 2020, less than European countries, and is in full economic recovery. “I have a little bit of knowledge, experience and I was following the data. And I said that Brazil would come back in V. Many criticisms were made. We exchange the axes of the Brazilian economy with reforms. It is not just another economy driven by public investments, but by private investments. As we made a huge change of regulatory frameworks, we have a commitment of BRL 890 billion for the next 10 years,” he said.
According to Guedes, the R$ 890 billion in investments represent 11 times the amount that former Minister of Infrastructure Tarcísio de Freitas had available in the budget to invest.
The Minister of Economy also stated that he hopes that Tarcísio is elected governor of São Paulo.
He also stated that there is greater predictability in the Brazilian economy with the reforms, that public banks have been broken up and state-owned companies, which used to make losses, now make a profit of R$ 180 billion. “We do more than all previous governments, but we don’t make noise. The measures launched after the war in Ukraine are transitory and paid for by extraordinary income. We control civil servant salaries and for the first time all states are in the blue. We raised the roof to combat the effects of the pandemic and the Ukraine war. But now they are transitional measures paid for by unbudgeted extraordinary income,” he said.
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