“Agro came very strong. So, we have to start thinking about 2024”, says the Minister of Finance
When commenting on this Thursday (June 1, 2023) on the result that showed GDP (Gross Domestic Product) growth of 1.9% in Brazil, in the 1st quarter of 2023, the minister Fernando Haddad (Farm) said it was necessary to have “caution”. The head of the economic team emphasized that agriculture was decisive for the result.
“We must have caution also because the agro came very strong. So, we have to start thinking about 2024″he told reporters.
Haddad, however, celebrated the result of economic activity: “We’ve been saying for some time that this year’s growth will hit 2%, right? So it is confirming the projections of the Secretariat of Economic Policy”.
The estimate by the SPE (Secretary of Economic Policy) is a 1.9% increase for the Brazilian GDP in 2023. For the 1st quarter of this year, the estimate was 1.2%. Data are available in the Macrofiscal Bulletin. Here’s the full of the report (2 MB).
According to the Minister of Finance, there is a “very good opportunity” for GDP growth in 2024, in addition to making room for lower interest rates. “Inflation is coming under control, future interest rates are dropping significantly, which opens an important window of opportunity for monetary policy. The fiscal effort will continue until the end of the year to guarantee the results of the new fiscal framework”he stated.
Haddad said he had lunch this Thursday (June 1st) with the president of the BC (Central Bank), Roberto Campos Neto. “We talked at length about the economic scenario for 2023, 2024, 2025. We are constantly exchanging views: techniques, my team, his team, so that we can increasingly converge the purposes of the Central Bank and the Treasury in same direction”he declared.
The minister stated that he maintains “permanent dialogue” with the head of the monetary authority. He said, however, that there had been no indications regarding the reduction of the basic interest rate, Selic, by 13.75%, during lunch.
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