Guedes admits a slowdown due to high interest rates, but says that investment is at its peak

Economy Minister Paulo Guedes once again said that Brazil is “doomed to grow”, based on the entry of more investments. Also according to him, the resumption in V no longer has to be discussed, since “economic activity has already recovered”.

“The cyclical recovery has already taken place. We are already back. The V happened, the V ended. Now, we are discussing next year’s growth, when we have to look at the investment rate: it is at its peak. Since 2014 it has not reached such a high level. It is at 19.4% of GDP”, he observed this Friday (3) when participating in the Annual Meeting of the Chemical Industry (ENAIQ).

Despite estimating that the investment rate will reach 20% of GDP (Gross Domestic Product) in 2022, the minister admitted that the rise in interest rates, as a result of inflationary pressure, will slow down the pace of growth.

“Of course there will be a strong deceleration, because interest rates are rising to control inflation. The important thing is to do the right thing and not the projection”, he added.

Guedes also criticized economists with more pessimistic projections for the performance of GDP next year. “I’m not predicting a growth rate of 2%, 3% or 4%. I am discrediting the same analysts as always who are politicizing and creating false narratives around facts”, he said.

For him, talking about the lack of support for the fiscal balance in Brazil is another false narrative, as well as the criticisms of the PEC dos Precatórios.

“Brazil is on its feet and the people are rolling in disgrace for next year. Every year rolls to the next. I’m not smug, I’m not saying that Brazil is the biggest in the world, that it’s doing the best job in the world. I’m just fighting false narratives,” he said.