RIO DE JANEIRO, BRAZIL – On Wednesday, September 2nd, Central Bank President Roberto Campos Neto emphasized that Brazil needs to return to fiscal discipline as of 2021, with incentives for investment in the private sector so that economic growth can be sustainable over time.
“What makes sense for Brazil is to have fiscal discipline. What makes sense for Brazil is to open the economy. We have tried to grow with state investment in the past and it didn’t work”, he repeated, attending the online event “Emerging & Frontier Forum 2020”, organized by Bloomberg.
He said Brazil was one of the countries that spent the most on emergency measures during the Covid-19 pandemic but stressed the significance of returning to the original fiscal adjustment plan that had been implemented until last year.
“The measures taken by the government to tackle the pandemic end on December 31st, unlike in other countries, which will need to go to Congress to terminate their measures. Their termination in Brazil is now planned because there is a time limit for ending,” the Central Bank president added.
In addition, Campos Neto said all talks with legislators suggest that the measures should not be renewed next year in Brazil.
Source: Estadão Conteúdo