Guedes: Government tries to accelerate economic agenda to secure support from liberals

Economy Minister Paulo Guedes said this Sunday (14) that the government needs to run with the economic agenda to guarantee support for the reelection of President Jair Bolsonaro. “We precisely hope to speed up our reforms to ensure the support of liberals,” he told reporters, during a trip he is taking in Dubai. “Our government is of the centre-right, so we are liberal in our economy and conservative in our customs.

For the liberals to continue supporting us, with a reelection of the president, reforms are needed. “They want to see administrative forms, they want to see privatizations advancing”, he continued.

According to the minister, although this has always been one of the priorities of the government’s economic agenda, the plan was often interrupted because of other episodes, such as the coronavirus pandemic and other issues such as the imbroglio of precatório (debt from the government already recognized by the Justice).

“Sometimes the reforms were interrupted because of all these things that happened, but we hope to earn the trust of the liberals… if we don’t move forward on this agenda: opening the economy, privatization, unlocking the investment agenda. This is what we are doing here in Dubai”, he enumerated.

Guedes avoided commenting on various matters that, according to him, are not related to his area, such as fuel prices and the issue involving Embraer, claiming that the matter is up to the Ministry of Defense. Likewise, Guedes did not want to talk to journalists about the rise in inflation, interest rates and oil prices on the international market.

“Oil is a matter for Mines and Energy and inflation and interest are a matter for the Central Bank. I have my expectations here, but I don’t comment”, he explained.

The minister, however, said that Brazil has started the process of reducing import tariffs within Mercosur. “I want the modernization of Mercosur, precisely to increase supply at a time when demand is strong and inflation is rising.”

Once again, he said that there is a lot of pessimism on the part of economic agents regarding the numbers in Brazil. “We are very optimistic. The economy’s growth is contracted.

Interest rates will rise a little to attack inflation, but growth is in contact, there are BRL 700 billion (in scheduled investments) besides the work we are going to continue doing. Do not bet against the Brazilian economy”, he warned.

According to Guedes, whoever presents negative forecasts will lose money. “Once again, the forecasts in Brazil will be wrong. Everyone is seeing that Brazil is not going to grow and what I am seeing is the opposite”, he defended.

According to him, in addition to the BRL 544 billion in investments planned, another BRL 150 billion were contracted with the auction of 5G technology, held at the beginning of the month.

“We already have more than R$700 billion in contracts. I find it very difficult for Brazil not to grow next year. When they said that Brazil was going to be depressed, I said I would come back in “V”. They said I was optimistic, but the economy came back in a “V”.

Then I said that Brazil was going to grow and we are growing 5.5%. Next year they are saying that it will not grow. I think it’s almost impossible, as we have the BRL 700 billion already ordered.”