Optimistic, Mantega sees GDP "slightly" higher than the Central Bank.
Guido Mantega, quite optimistic, believes that the downward revision of GDP growth, made by the Central Bank under Alexandre Tombini, may not materialize; "We might even achieve a little more," said the Finance Minister in São Paulo, regarding the projected growth of 2,5%, compared to 2,7% previously; he recalled that the accumulated growth over the last ten years was 28%; for Mantega, the country can grow economically by another 20% by 2022; "Investment is a high multiplier of GDP, it's what has the most effect on the economy," he declared.
247 - Finance Minister Guido Mantega started the week by putting an end to pessimism. Speaking in São Paulo this Monday, the 30th, he stated that Brazil could grow its economic activity by up to 20% by 2022. He also predicted a GDP result this year higher than the Central Bank's projection, which reduced its growth expectation from 2,7% to 2,5%. Mantega based his analysis on the Brazilian economy's capacity to attract investments, "the great multiplier of growth," as he defined it.
Below is news from Agência Brasil regarding this:
Fernanda Cruz
Reporter from Agência Brasil
São Paulo - Finance Minister Guido Mantega commented on the results of the Central Bank's Quarterly Inflation Report, released today (30). The document reduced the economic growth projection for this year from 2,7% to 2,5%. According to the minister, the economic situation has shown improvement.
"Given the good results of the second quarter, we might even be able to achieve a little more. But for now, it's best to stick with 2,5% and see what happens. I'm getting indications that the economic situation is gradually improving," he said.
The minister said that, during a trip to the United States, he observed that investor confidence in the country is returning and that energy and highway auctions have encouraged foreign investors. "We can begin to accelerate our growth, especially because the adverse conditions of the international economy are improving. They had been hindering us significantly."
Regarding the projected inflation rate of 5,8%, as measured by the Broad National Consumer Price Index (IPCA), he said that the government is working to lower the rate. "The Central Bank is doing its part and the Ministry of Finance is doing its part, reducing costs in the economy, as we have been doing," he said.
Edited by: Talita Cavalcante
Fernanda Cruz
Reporter from Agência Brasil
São Paulo – Finance Minister Guido Mantega estimated today (30) a 40% growth in Gross Domestic Product (GDP) per capita between 2013 and 2022, reaching the value of R$ 30 thousand at the end of the period. According to the minister, this would require an average GDP increase of 4%, and investment would have to grow by an average of 7% per year.
He highlighted that the recorded growth from 2003 to 2012 was 28%, with the GDP per capita in the country being R$ 16,6 in 2003 and rising to R$ 21,3 in 2012. During that period, GDP grew by 3,6%, and investment increased by 5,7%.
Mantega spoke in São Paulo, at the opening of the 10th Economics Forum of the Getulio Vargas Foundation (FGV), promoted in partnership with the Federation of Industries of the State of São Paulo (Fiesp), the Institute for Studies for Industrial Development (Iedi) and the
Inter-Union Department of Statistics and Socioeconomic Studies (Dieese). The theme of the meeting was Strategies to Double Brazil's Per Capita Income in 15 Years. "To double it in 15 years requires a lot of strategy. It's an ambitious goal that few countries have managed to achieve in that timeframe," said the minister.
He outlined the growth of GDP per capita over the last ten years. According to Mantega, during that decade, there was investment in human capital, not just in production and infrastructure.
The new growth cycle, the Finance Minister highlighted, will be driven primarily by investment in infrastructure. The government is focusing on the Concessions Program, which is investing R$ 500 billion in sectors such as ports, airports, highways, railways, and energy.
He pointed out that the ongoing energy and highway auctions aim to hand the matter over to the private sector, which has greater agility. "Investment is a high multiplier of GDP; it has the greatest multiplier effect on the economy," he stated.
To facilitate investments, the country adopted cost-cutting measures. The exchange rate was devalued to favor the cost of inputs, the country reduced the cost of energy, minimized the cost of increasing labor costs through payroll tax exemptions, and reduced financial (interest rates) and tax costs.
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