In U.S. speech, Economy Minister says Brazil is experiencing its “greatest reduction in poverty”

RIO DE JANEIRO, BRAZIL – Guedes attributed this achievement to the payment of emergency aid – about R$300 (US$54.4) billion in 2020 – to help the most vulnerable. The benefit was resumed in April this year, at lower amounts.

“Brazil spent twice as much as the average of emerging countries on social assistance. It was the biggest impact on poverty we have ever had,” said Guedes during an Atlantic Council event in Washington, DC.

Guedes also said that the payment of aid ultimately fueled the acceleration of inflation, particularly in food and housing items. But he pointed out that Brazil approved the Central Bank’s autonomy and that the inflationary phenomenon has been observed all over the world.

APPROVAL OF REFORMS

During the event, Guedes urged foreign entrepreneurs to bring their companies to Brazil in the post-pandemic scenario. The economist also cited the desire to approve the tax reform still in 2021 – which would lower corporate taxes.

“My words are: believe in Brazil. Especially in this decisive moment, post-pandemic, when many companies are changing their location, leaving China, moving to South America. Think about Brazil, we are reducing corporate taxes, trade barriers, opening the economy, simplifying the process of starting a business in Brazil,” he declared.

The tax reform Guedes mentioned proposes to reduce corporate taxes and, at the same time, to reinstate taxation on profits and dividends distributed to individuals.

In addition, the Minister said he believes that the administrative reform and privatizations of the Correios and Eletrobras will also be passed by December.