Economy Minister Paulo Guedes argued that Brazil has undergone a structural change in the economy and that the current model is focused on private investment. The speech was made to CNN after Guedes spoke during a meeting of the International Monetary Fund (IMF), in Washington, this Tuesday (11).
“When you make a strong structural change in the economy, as is our case, the old models lose their grip, because they were predicting low growth based on public investment that has been falling for 20 years, so the country grows less and less, which it was a truth, it was a fact. But we changed the economic model, the model is now based on private investments. It has R$ 900 billion of private investments already contracted”, he said.
The minister also strongly criticized the fund’s work in drawing up a panorama focused on the retraction of the global economy, noting that Brazil would be “out of tune”, with positive projections for activity and inflation.
“Unfortunately, the IMF’s bilateral and multilateral surveillance has neglected the nature, magnitude and extent of the rise in inflation that began in 2021. As a result, the Fund’s policy stance was misguided in several cases,” he said, in a transcript of the statement released by the IMF. this tuesday.
Guedes stated that in a global environment of high inflation, high levels of public indebtedness, synchronized deceleration and exhaustion of fiscal space, countries need to rely on the IMF as a beacon of high-quality analysis and advice, emphasizing, without going into detail, that the The Fund’s agenda has been expanded in recent years to include non-core issues.
“The Fund must therefore reorient and strengthen its macroeconomic and financial analysis, oversight and policy advice to fully restore the credibility that was lost in this process,” he added.
In the statement, Guedes said that inflation in Brazil has been consistently revised downwards and GDP growth revised upwards, in the opposite direction of most countries.
“Brazil is out of step with the global economy, positively surprising skeptics, including the IMF,” he said.
*With information from Reuters.
Source: CNN Brasil
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