Guedes admits that inflation will slow the economy in 2022, but says the country will grow

Economy Minister Paulo Guedes admitted that Brazil’s economic growth will be lower in 2022 due to the fight against inflation. Even so, he reinforced that the country will register a positive performance of the GDP (Gross Domestic Product) and that with the de-indexation, untying and release of the Budget, the country’s policy can become “virtuous”.

“What happens tomorrow depends on what we are doing today. Brazil is doomed to grow, despite all the pessimism, all the political noise. […] It will grow a little less because we are going to be fighting inflation, but we are going to grow”, he said at an event organized by the National Association of Airport Administration Companies (AEAA).

Also according to Guedes, the rise of the Stock Exchange indicates that the market did not take the series into a hypothesis of a new recession in Brazil. “We entered a technical recession, GDP dropped 0.1% in the quarter. The Stock market rose 3%. If someone had taken seriously that the GDP is going to fall, the stock market would not be falling”.

When commemorating the approval of the PEC of the precatório in two rounds in the Senate, the minister pointed out that the Constitutional Amendment means the control of the public expenses. “On the contrary, again, of the false narrative that we want to break the roof, fiscal lack of control, we also want the precatório under the roof”, he affirmed.

Guedes also defended the acceleration of the privatization agenda, stressing that state-owned companies impede the entry of private sector investments.

“Hesitation is an enormous difficulty. The Brazilian intellectual elite is on the left, so you can only create state-owned, you can’t sell. This is harming the growth of Brazil”, he added.