Economy Minister Paulo Guedes minimized the 0.1% drop in GDP in the third quarter of this year, as a result of the sharp drop in the agribusiness sector.
TO CNN, Guedes stated that the 8% drop in agriculture, which pulled the general GDP down, was localized and has a transitory effect.
“It was an accident on the way, a chance, like rain, wind. One sector had a fall [agronegócio]. For the next month, the effect of this passes, it is transitory. The headache is much greater with inflation”, he pointed out.
Guedes highlighted that, unlike agro, other sectors showed stability or returned to growth, such as industry, services and commerce.
The minister believes that the most worrying factor for economic growth is the increase in interest rates and inflation. “The worrying effect is inflation, which we are fighting, and there is more persistent action, it will stay longer”, he said.
As a positive fact, Guedes listed the growing route of investments in Brazil. According to the minister, the country reached the highest level since the third quarter of 2014.
“What keeps us optimistic is that we have reached the highest level of investments in the country since 2014. It is at 19.4%, the annual value. That’s almost 20% of GDP. Investment rate better says the outlook for the economy. We already have indicators at the same level as before the pandemic, we managed to put the economy back on its feet”.
“He wants to know if Brazil is going to grow, he has to look at investments, the only reason it doesn’t grow much because we are fighting inflation,” he concluded.
Reference: CNN Brasil
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