The Minister of Economy, Paulo Guedes, announced this Tuesday (22) new measures that will be launched by the end of 2022 as a stimulus for economic growth.
Among them is the launch of a program to universalize access to credit, the 25% reduction in the Tax on Imported Products (IPI) and the release of resources from the Severance Indemnity Fund (FGTS).
“We can mobilize FGTS resources because they are private funds from people who have resources there and are experiencing difficulties. Sometimes, the person owes money in the bank and is a creditor in the FGTS. Why can’t he cash it out and settle the debt on the other side, at the other bank?” he said.
“Since the collection rose sharply, we were going to invest in a tax reform that stalled in the Senate, the Executive prefers to transform this revenue gain, in the form of tax reduction, for millions of Brazilians, for everyone. So let’s reduce this IPI and start the Brazilian reindustrialization movement”, he said in his participation in the CEO Conference of BTG Pactual this Tuesday (22).
According to the minister, federal revenue in January reached a real high of 16%. The official result should be announced later this week. The economic team is betting on the extraordinary growth of tax collection to release more stimuli to drive the advance of economic activity.
Review of projections
Guedes said he is confident that the market and financial institutions will spend the whole year revising upward their projections for the performance of the Gross Domestic Product (GDP) in 2022. Covid-19 pandemic.
“I think everyone will spend the year doing an upward revision slowly: ‘up 0.5%. No, it will be 1% or 1.5%. No, it looks like it will be 2%’. They got it wrong before and I think they will get it wrong again,” she said.
According to the minister, in addition to economic opening and spending control, the growth of the Brazilian economy will be driven by investments in infrastructure and the government’s commitment to social programs, such as Auxílio Brasil.
“In attack, (we will have) an entire investment platform that will see Brazil growing for several years, whether we like it or not. Brazil is doomed to grow. There are BRL 800 billion in investments over 10 years, BRL 80 billion per year. How will it not grow?”, he reinforced.
International scene
Still according to Guedes, the trajectory of economic growth in Brazil will, with “its own growth dynamics”, clash with the international economic performance and the main economies of the world. He again said that US and European inflation will be more persistent than expected.
“The inflation that got there is here to stay. We are going to see a worsening of the international situation. I’m not just talking about geopolitics but the economy: energy crisis and rising inflation in the biggest country in the world. And it will rise in Europe as well. They’re going to review the growth out there for the entire year. They will review Brazilian growth for the entire year”, he added.
Source: CNN Brasil
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