Meirelles: 2016 should be remembered for growth perspective
For Finance Minister Henrique Meirelles, 2016 should be remembered "for the regaining of economic growth perspective."
For Finance Minister Henrique Meirelles, 2016 should be remembered "for the regaining of economic growth perspective." According to Meirelles, in the second half of last year, business and consumer confidence indicators were recovered, Brazil risk was reduced and the real was appreciated against the dollar.
The minister's remarks were attached to the annual report on the federal public debt, released today (Jan. 25). The document shows that, in 2016, the stock of debt reached $983.6 billion, up 11.45% compared with 2015 debt.
"The better performance of the economy has affected the indicators of the federal public debt, and mostly, the decrease of interest rates during the year, which directly favors the cost of financing this debt. The federal public debt is marked by healthy composition, reduced foreign exchange exposure and low rate of short-term bonds, in addition to a diversified base of investors," he said.
According to Meirelles, the speed and extent of the ongoing structural fiscal adjustment were crucial for improving confidence in the economy. "For the first time, a change was approved in the Federal Constitution to limit public spending growth for up to 20 years, but maintaining the floor rate for education and health expenses," he pointed out, referring to the constitutional amendment bill known as PEC 55. Meirelles also mentioned the social security reform, which will be discussed this year at the National Congress.
Inflation
According to him, the impacts of monetary policy are already felt in the deceleration of inflation measured by the Broad National Consumer Price Index (IPCA), which reached 6.29% in 2016, below the target ceiling. The target set by the National Monetary Council (CMN) is 4.5%, with two percentage points margin.
Meirelles said that in the external sector, current account deficit continues to be adjusted. "The strength of direct investment inflows into the country continue to strengthen the capital account, strongly supporting the national currency. The reduced need for external financing and large amount of international reserves—$ 372.2 billion—keep external accounts stable."
The finance minister said he expects the country to continue undertaking reforms to achieve fiscal balance, sustainability of public debt and economic recovery.
Translated by Amarílis Anchieta
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