Minister of Economy, Paulo Guedes
(Reuters) – Economy Minister Paulo Guedes said on Friday that the country’s growth will accelerate next year, with the reduction of inflation and interest, noting that the rise in GDP could reach up to 3, 5%.
“Next year, as inflation has already dropped this year and next year it drops again, interest starts to fall, (the economy) will come back and it will be more than 2.5% (growth rate). It will be 3%, it will be 3.5%, we will grow even more”, said Guedes.
“We think that (the interest rate) will start to fall as soon as the year turns,” added the minister.
The market’s expectation is that GDP growth will lose strength next year, under the delayed impact of the monetary tightening already promoted by the Central Bank to contain inflation. Projections point to growth of around 0.40% in 2023, after an expected increase of 2% this year, according to figures from the Focus survey released by the BC.
Speaking at an event held by the agricultural cooperative Cotrijal, in Passo Fundo (RS), Guedes also said that, if the Jair Bolsonaro government wins the October elections, it is possible that Congress will approve tax and administrative reforms later this year.
The minister stressed that the country is able to maintain emergency aid at 600 reais and that this can be made possible with the taxation of dividends provided for in a tax reform already sent by the government to Congress.
Guedes also said that the government wants to move forward with tax relief on the productive sector so that Brazilian companies are able to compete with international competitors. “We don’t want Chinese people coming in here and breaking our factories,” he said.
(By Isabel Versiani)
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