Brazil has no serious structural problems, says Rousseff at UN
Rousseff said that Brazil is experiencing economic difficulties, adopting measures of fiscal and financial rebalancing.
President Dilma Rousseff declared today (28) that Brazil does not have any structural problem and is going through a moment of transition to another cycle of economic expansion, a profound, solid and long-lasting one. In her address at the UN General Assembly, Rousseff said the country is experiencing economic difficulties, adopting measures of fiscal and financial rebalancing.
The president pointed out that to rebalance the budget the government "has strongly reduced public expenditures" and redefining sources of revenue to ensure the resumption of economic growth with income distribution.
According to her, for some years the Brazilian government has sought to keep the impact of the world crisis that emerged in 2008 from affecting the local economy by adopting a comprehensive set of measures aimed at lowering taxes, expanding credit, and strengthening investment.
"During this period, we increased employment and income. This effort reached its limit, due to both internal fiscal constraints and external conditions. The slow recovery of the world economy and the end of the commodities' supercycle affected our economic growth negatively," stated the president.
Rousseff also mentioned currency devaluation and the recessive pressures that brought about inflation and a sharp drop in tax revenue, leading to restrictions on public finance. "Brazil, however, has no serious structural problems. Our problems are cyclical, and, before the current situation, we are rebalancing our budget and committing to a strong reduction in our expenditures, in the spending cost and even in part of the investment," she announced.
The president said the government's fiscal adjustment measures aim to lower inflation in a bid to consolidate macroeconomic stability, increase confidence in the economy and ensure the resumption of economic growth alongisde income distribution.
Translated by Amarílis Anchieta
Fonte: Brazil has no serious structural problems, says Rousseff at UN
