Minister Nelson Barbosa: possible to reverse GDP fall

Planning Minister Nelson Barbosa announced today (Nov. 24) that he expects to reverse, in the coming months, the fall forecast for the gross domestic product (GDP) in 2016. He expects Brazil will be able to attract more investors for infrastructure. He said the recovery in exports will also help reverse the fall in GDP.

In a document submitted on Monday (Nov. 23) to the Joint Budget Committee of Congress, the government forecasts the GDP will shrink 1.9% next year, contrasting the 0.2% growth previously forecast and submitted to the committee.

Barbosa said that, as happens in any projection, the government's forecasts can also be reviewed. "We are working to recover growth as quickly as possible. It's important to remember that these projections are weekly updated by the Focus Bulletin [publishing surveys conducted by financial market specialists] released by the Central Bank, and these projections indicate that we can quickly recover growth and we are working on it," he reported.

The minister disclosed the information while participating in the Forum on Transport Infrastructure, sponsored by the daily newspaper Folha de São Paulo. He believes that to recoup investment in transport infrastructure will help reinvigorate the economy.

When asked about investors' interest in Brazil, facing a situation of weak domestic demand, Nelson Barbosa noted that exports should compensate it.

In Barbosa's view, the exchange rate has boost Brazilian trade abroad, already reaping benefits of the world market recovery. He believes that, by possibly recouping infrastructure investment, the Brazilian economy will achieve stability at first and then go through a recovery process.

The strategy, he said, will be "to heavily invest in concessions, especially concessions of highways, railways, ports, and airports that already exist and would only need to be expanded and improved. This investment has lower risks, raises an immediate revenue, and meets pent-up demands. "

The minister pointed out that the government is making adjustments in the infrastructure model aiming to invite the most attractive bids, especially for foreigners.

Translated by Amarílis Anchieta