BC President sees opportunity for Brazil to enter a global chain with war

The president of the Central Bank, Roberto Campos Neto, stated that Brazil may have the opportunity to enter the global value chain in a more intense way, due to the war scenario in Eastern Europe.

“Brazil did not enter the global value chain during much of this period of specialization that we had. Now, with this redivision, we have the opportunity to be much more present. It is a secular opportunity for Brazil, if it is in the right place, with the right policies, to enter these global value chains”, he evaluated.

The speech was this Wednesday (23) during the opening of the Seminar Cycle of the Federal Court of Auditors (TCU), in partnership with Fiesp, on tax rules.

He also says that the shocks resulting from the conflict – such as the rise in mineral and food prices – can benefit the country. “If Brazil has fertilizers to produce food, it can be positive, because the price of food goes up, and Brazil is a world food producer,” he commented.

“Less growth, more inflation”

The BC president also stated that the redesign of global chains after the war in Ukraine means that “the world will have a relatively long period of less growth and more inflation”.

Also according to him, this redesign is a consequence of the polarization that will be implemented in the post-war scenario. “We see through the eyes of private companies that this division is already happening,” he said.

Campos Neto also commented on a global energy crisis, also the origin of the impacts of the conflict. “When we look at the long term, there will be an improvement, because with higher energy prices there is an incentive for alternative energy. So we have a short-term problem (energy crisis) that can accelerate long-term solutions for alternative energy”, he pondered.

Campos Neto once again said that the inflation peak in Brazil should happen in April, followed by a fall in prices. The forecast is the same as the one he made in February. However, he admitted that the number must be greater than the sword previously.

Also according to the BC president, Brazil has stood out in the fight against inflation and investment in the country has increased. “Partly because Brazil has companies that manage to live well with a higher level of inflation and also because we have shown more positive numbers”, he observed.