Brazil may be on a growth cycle of 3% per year for 10 years in a row, says Guedes

Economy Minister Paulo Guedes said this Tuesday (28) that Brazil could be entering a growth cycle of 3% per year for the next decade.

“Brazil could be in a long cycle of growth of 3% per year for 10 years in a row,” he said in Brasília during an event in the telecommunications sector.

According to the minister, the advance foreseen for Brazil should go against what is expected for the rest of the world, where the main economies are experiencing a scenario of high inflation and risk of recession.

“We are arriving from the rehab clinic. Everyone tidy and starting to enter global markets (…) Unemployment in Brazil will continue to fall. Brazil surprised in its reaction to the crisis and we will continue to surprise”, she says.

Guedes highlighted a speech by the president of the Central Bank, Roberto Campos Neto, this week, about inflation in Brazil reaching a peak, tending to fall from now on, and said that, this year, the growth of the economy should reach close to two%.

“It is true that interest rates will slow the economy, but not recession. Instead of growing 3.5%, it will grow 2%. The biggest proof of this is that, even with high interest rates, Brazil will grow 1.7%, close to 2%.

“At the same time that the collection is up, we reduce and simplify taxes. Contrary to what we have done in the last 40 years”, he says.

foreign investments

Guedes also says that the world has changed its attitude towards Brazil, at a time when the country is showing itself as a source of “energy and food security in the world”. Which, according to the minister, will be reversed in foreign investments, part of which is already contracted.

“I wanted to start by leaving a message of optimism even for investments in the sector. R$ 35.8 billion this year and an expectation of R$ 40 billion for next year. In 10 years, it is BRL 800 billion, which we have already contracted for other sectors when we carried out renovations: highways, railways, concessions, privatizations, sanitation, ports, airports, natural gas, oil, 5G”.

“We never had this flow of private investment. R$ 860 billion already contracted with R$ 160 billion already paid in grants, R$ 1 trillion in investments”.