Finance Minister: low growth is a 'transition stage of Brazil'

Finance Minister Nelson Barbosa said today (Jan. 21) that the low economic growth is not normal, but "a transition stage of Brazil." He attended a panel at the World Economic Forum in Davos, Switzerland, to resume global growth. Under the new international scenario with falling commodity prices, the country is adapting to this reality, according to the minister.

The International Monetary Fund (IMF) forecast a drop in gross domestic product (GDP) this year and, for 2017, expects stability, with an estimate of zero growth.

Barbosa reported that Brazil has benefited from high commodity prices and invested the resources in social protection programs. "Reducing inequality is as important as increasing GDP per capita for emerging economies and it requires government action. Even in a more adverse economic scenario, the government has to act to reduce inequality, and the challenge is to maintain the inequality reduction policies. "

For the minister, it is possible to increase productivity and, meanwhile, reduce inequality. "The key to achieve this is to have the right institutions to deliver productivity gains in a way to generate more job opportunities and better qualification of the workforce."

Latin America

When asked about Brazil's role for the South America to resume growth, Barbosa pointed out that the economic recovery requires greater investment. "Brazil has a low investment rate compared to other emerging economies, and our main task is to increase our investment, which requires not just macroeconomic stability, but especially the government's more active role to coordinate investment projects and enhance regional integration," he added

Translated by Amarílis Anchieta

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