GDP reduction this year to be even smaller than expected, Guedes says

Brazil’s Economy Minister Paulo Guedes stated today (Sep. 9) that the reduction in the Brazilian economy this year will be even smaller than current estimates. He said the economic activity is recovering more quickly than even he expected.

During an online event of Swiss investment bank Credit Suisse, Guedes noted that the forecasts on the reduction of the country’s gross domestic product (GDP) was slashed by half, considering the estimates made early in the COVID-19 pandemic, currently standing between four and five percent. “It’ll be smaller than that. We’re managing to bounce back.”

The current estimate of the Economy Ministry for the reduction of the GDP is 4.7 percent. However, last week, special finance secretary Waldery Rodrigues said the estimate should be revised. “All data we have indicate that the worst is behind us,” the secretary argued.

The minister advocated the so-called “structural” reforms, proposed by the government, and also mentioned that the privatization agenda will be revamped, with “two, three, four, major companies to be privatized” being announced.

“We’re freeing the horizon for private investment. There will be a boom of private investment in the coming ten years at least,” he said.