Guedes says he sees tax and administrative reforms approved by the end of the year

Minister of Economy also projects the completion of the privatization of Correios and Eletrobras in 2021

MATEUS BONOMI/AGIF – PHOTOGRAPHY AGENCY/ESTADÃO CONTENTEconomy Minister Paulo Guedes said that Brazil will donate vaccine doses to neighboring countries

Minister of Economics, Paulo Guedes said on Wednesday, 13, believe that by the end of the year the reforms administrative e tax will be approved by Congress. When listing a series of transformations in the country, the head of the economic team also stated that in 2021 the privatizations of the post offices and yes Eletrobras. “Brazilian democracy will continue to surprise. Brazilian democracy is quite noisy and vibrant. You can hear it from here, there are many stones being thrown from one side to the other, but everything within the democratic field,” he said in an interview with Atlantic Council, in the United States. The minister also stated that the government will distribute vaccines against the Covid-19 for Latin American countries by December, the estimated period for complete immunization of the Brazilian adult population. Without mentioning which countries will receive the doses, Guedes mentioned the importance of vaccination for Caribbean islands that have an economy based on tourism and that immunization is important so that the region’s economic growth does not evolve unevenly. “We are going to start vaccinating our neighbors, we are going to help our neighbors”, he said.

When commenting on the country’s actions in combating the economic effects generated by the new coronavirus pandemic, Guedes said that the distribution of emergency aid allowed the country’s greatest reduction in poverty in more than 40 years. “We created the direct transfer of income to people and it was a fabulous impact,” he said. According to the minister, Brazil spent twice as much as that of emerging countries and 10% more than that of advanced economies. The benefit, however, he acknowledged, led to an increase in inflation. “We are starting to see price growth in sectors such as housing and food,” he said. The minister relativized the acceleration to 10.25% of the Extended Consumer Price Index (IPCA) in the 12 months ending in September — the highest record since February 2016 —, stating that high inflation is a global phenomenon. “In the US it used to be zero, and now it’s 5%. In Brazil it used to be 4%, and it is at 9%.”

The head of the economic team once again stated that the Brazilian economy will grow above 2% in 2022, a much more optimistic view than that of the financial market and other entities. O International Monetary Fund (IMF) revised its GDP expansion projections for next year to 1.5%. According to Guedes, the forecast is suffering interference from the insecurities of the international scenario. For 2020, the institution even predicted a 9.1% drop in GDP, while the official result pointed to a drop of 4.1%. “They will make a mistake again. One of the lessons of economics is that when you have a lot of uncertainties and shocks, the stability of forecasting methods is completely lost”, he said. Guedes also said he hopes the US will renew support for Brazil’s nomination for the Organization for Economic Cooperation and Development (OECD), considered the club of rich countries. “We are doing our homework, working hard and talking to the Americans,” the minister said, citing developments in government digital systems and efforts to reduce corporate taxes. The head of the economic team also said that Brazil is the third largest investment destination in the world and that the country is open for business. “Many companies are shifting their geographic positions, leaving China and going to South America. Think about Brazil.”

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