"The market has finally realized. Bolsonaro is leaving behind a R$ 300 billion deficit and the highest real interest rate in the world," Haddad tells TV 247.

247 - Finance Minister Fernando Haddad (PT) denied that the stock market fall on Monday (2) was due to a speculative attack on the beginning of his tenure at the head of the ministry. For him, it is about the disastrous legacy left by the Jair Bolsonaro (PL) government in the economy. "People are appropriating the numbers and what happened in Brazil in 2022. There was a feeling that the economy was on the right track and this feeling is being undone by the presentation of the numbers," said Haddad this Tuesday (3), in an interview with TV 247.

“He did all this and nothing happened? What happened is that interest rates went from 2% to 13,75%. That is Bolsonaro's great legacy. The legacy of a R$ 300 billion deficit and the highest real interest rate in the world. So this isn't a speculative attack; it's that the penny has dropped. It's up to us to clarify the situation transparently, to say that we're not going to complain. We're going to correct this,” the minister emphasized. 

According to Haddad, “people didn’t realize that Bolsonaro used about 3% of GDP – 1,5% in increased spending and 1,5% in tax breaks – to produce the effect he intended during the election process. He succeeded, except for the fact that he was running against Lula and lost the election. With R$ 300 billion available to spend during the election, he could have elected anyone, except Lula. That’s what we learned in 2022.”

The minister also highlighted that the tension in the financial market is linked to "insecurity" regarding the figures being released. "A large part of the business community is hoping the country succeeds, but many didn't have a clear understanding of the government they were supporting. I want to make that clear," he added.

"There were many people who thought the economy was booming, with a great recovery. One newspaper even went so far as to publish an editorial stating: 'Lula's government is threatening the recovery,' while the economy has been slowing down for two quarters. So people were really deluded. I think they were very uninformed people, who were deluded about finances. They didn't grasp the magnitude of the deficit and lacked clarity about the impact of the highest real interest rate in the world on economic growth," he added.

Haddad also noted that the current level of interest rates compromises the country's investment capacity. "Depending on the calculation, the real interest rate is between 6% and 8%. What economic activity yields that? Can you imagine an investment that has that real rate of return? So people were very deluded."

“That’s the irresponsibility that was committed in 2018. No one had any idea of ​​the level of psychopathy of the person who was assuming the Presidency of the Republic, and who did everything to stay in power. He only didn’t do more because he lacked the means,” he stated.

Subscribe to 247, Support via Pix, Subscribe to TV 247, in the channel Cuts 247 and watch: