Economy Minister Guedes says Brazil has never been as well received at the IMF as it is now

RIO DE JANEIRO, BRAZIL – In an interview with journalists, Economy Minister Paulo Guedes says that since the beginning of the Bolsonaro government, the country has never been received as well as it was at the current annual meeting of the IMF and World Bank in Washington.

Economy Minister Paulo Guedes, a major critic of the International Monetary Fund (IMF) and its forecasts, which tend to be more pessimistic than the government’s, celebrated the improvement in the multilateral organization’s estimates for Brazilian gross domestic product (GDP) growth.

He also said Brazil would be treated “differently” at the annual spring meeting of the Fund and the World Bank, which is being held this week in the U.S. capital.

The head of President Jair Bolsonaro’s (PL) economic team said at the current IMF and World Bank meeting that “Brazil has not been as well perceived in the world as it is now” since the beginning of the government when he took over the ministry.

“Brazil is treated differently and much better in these forums,” Guedes said, according to a statement released Thursday evening (21) by the Ministry of Economy at a press conference held by the minister at the Brazilian Embassy in Washington.

According to the statement, the minister stressed to journalists that Brazil is increasingly strengthening its ability to attract investors from around the world, reflecting the scenario of structural reforms and improvement in the production scenario implemented by the current government since the beginning of 2019.

The release goes on to say that the country has US$200 billion worth of projects under contract for the coming years, taking into account commitments already signed and ensuring the country’s future growth rate.

“Brazil is attracting a lot of long-term investments,” the minister said. The report went on to say that the 15% currency appreciation of the real this year “proves that there has been a dramatic and positive international reassessment of Brazil.”

Last Tuesday (19), the IMF released new forecasts for the global economy, raising its estimate for Brazilian GDP growth this year to 0.8% from 0.3%, but lowering its estimate for growth in 2023 to 1.4% from 1.6%.

Despite the improvement, Brazil continues to post lower growth rates than the global average of 3.6% and the Latin American average of 2.5%.

Guedes reiterated that Brazil “has positively surprised the world” and that the country occupies a strategic position in the current global panorama, as world economic instabilities have intensified due to the war in Ukraine. “In the current global context, the country is an important player in the field of food and energy security and a safe destination for investors,” he said in the statement.

The statement further said that Guedes stated that the government is committed to expanding the country’s integration into the global economy. In this regard, the minister stressed the importance of advancing the process of Brazil’s accession to the Organization for Economic Cooperation and Development (OECD).

According to the statement, he also recalled the interest in resuming negotiations on the trade agreement between Mercosur and the European Union, which had been stalled for 20 years.

“The minister also stressed the importance of making progress in the capitalization of Eletrobras to ensure the country’s energy security in the coming years and to strengthen the agenda of privatizations and concessions for investors,” the statement added.

The spring meeting of the ministers of the IMF and the World Bank (will be held from April 18 to 24, 2022. During the day, the minister met with UK Finance Minister Rishi Sunak and attended meetings with international investors and UN Climate Change Conference (COP26) Chairman Alok Sharma.

Accompanying the Economy Minister during his visit to the United States are Special Secretary for Foreign Trade and International Affairs Roberto Fendt, Secretary for International Economic Affairs Erivaldo Alfredo Gomes and Secretary for Foreign Trade Lucas Ferraz.