Finance Minister admits Brazil could face recession
Levy expects renewed trust and confidence in the country to encourage investment and help secure jobs and consumption levels in the following months
Finance Minister Joaquim Levy admitted Brazil could face an economic downturn in the first quarter of 2015, but pointed out the contraction should be temporary. “A downturn in one single quarter is not significant in terms of growth,” he said.
Levy expects renewed trust and confidence in the country to encourage investment and help secure jobs and consumption levels in the following months. Speaking to Brazilian journalists in the sidelines of the World Economic Forum in Davos, Switzerland, he said the tax increases announced Monday (Jan. 19) will have only minimal impact on production and consumption, considering that the effects of spending cuts and increased taxes should be limited to the first months of 2015. Moreover, he said these efforts are just a first step to create economic stability, and the government should continue to make adjustments to resume the pace of growth.
“Foreign investors might like to know that we are not focused on the near future. We are not looking for temporary fixes here – rather, we are putting things into order to ensure robust growth,” the minister asserted.
Translated by Mayra Borges
Fonte: Finance Minister admits Brazil could face recession
