In an interview this Thursday (1st), the economist and specialist at CNN Brazil , Aod Cunha, pointed out that the main challenge for next year is the uncertainty regarding the basic interest rate, the Selic. This is because the world is experiencing a global slowdown and this affects the Brazilian economy.
The IBGE (Brazilian Institute of Geography and Statistics) released this Thursday the result of GDP (Gross Domestic Product).
Cunha points to uncertainties on the fiscal issue, about how the size of the new increase in expenses will be equated, which may have an impact on the interest rate in Brazil.
“It is very prudent to think very seriously about this size of license in order to spend more. I don’t see room for the government to spend much more than R$70 to R$80 billion. [Estes valores] cover the new family allowance, at the level of R$ 600, queue resolutions at SUS and the additional for poor families with children up to 6 years old”, he points out.
Cunha said that when you talk about BRL 175 billion, BRL 200 billion, or even BRL 150 billion outside the ceiling, for a longer period of time, without a readjustment rule, it puts pressure on interest rates, pushing them up, and even puts pressure on the dollar and harms the poorest – “those who most need income, jobs and a well-functioning economy”, he assesses.
Source: CNN Brasil
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