February 27, 2021

Brazil’s finance minister calls for more reforms in the face of the global crisis

The Minister of Economy of Brazil, Paulo Guedes, tried to convey calm on Monday in the midst of the collapse of global markets and said that the best way to deal with economic uncertainty is to advance in a plan of liberal reforms.

“We are absolutely calm. The economics team is calm,” because “it knows how to deal with” crisis situations that “have already been experienced several times,” the minister told reporters.

Guedes pronounced after the Sao Paulo Stock Exchange, which in recent weeks has collapsed due to the impact that the coronavirus has had on the world economy, opened on Monday with a drop of more than 10%, touched by the crisis unleashed in the global oil market, which has collapsed crude oil prices.

“We have to maintain absolute serenity and the best response to the crisis is the reforms,” ​​said the minister, who said that in the next few days he will send to Parliament a series of proposals for deep revisions of the country’s tax structure and administration public

The Brazilian economy, which adopted a totally liberal course since the arrival of the ultra-rightist Jair Bolsonaro, grew last year just 1.1%, insufficient rate after the expansion of 1.3% recorded in 2017 and 2018, after a deep fall of seven percentage points in the 2015-2016 period.

According to Guedes, that has been the product of an uncertain international scenario, in which the appearance of the coronavirus has been “the drop of water” that spilled the glass.

“India revised its growth downwards, China did the same. The world is in slowdown and now the coronavirus is coming, which accelerates the fall” and leaves the international economy “at a critical moment,” he said.

Even so, Guedes said that “Brazil has its own growth dynamic” that will be maintained, as long as Congress collaborates with the approval of the necessary structural reforms.

“If we do things right, Brazil accelerates. But if we do things wrong, Brazil gets worse,” he said.


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