“We Will Surprise the World,” Brazil’s Economy Minister Says of Economic Rebound

RIO DE JANEIRO, BRAZIL – Economy Minister Paulo Guedes said on Monday, April 20th, that there will be a V-shaped economic recovery after the novel coronavirus crisis, with a rebound as fast as the downturn. “We are going to surprise the world,” said the Minister.

According to Guedes, the economy can not be allowed to enter a major depression. In his assessment, Brazil has taken measuresequal to or better than those of other countries, including developed countries. “Every day there is racket but Brazil is moving forward and progressing,” he said in an interview with BTG Pactual bank.

The Minister believes the government’s assumptions for the economic impact of the novel coronavirus, when it was still expected that the shock would only be felt in foreign trade, proved reasonable after the first trade balance data.

“Brazilian exports have not yet dropped, they are rising. The drop in exports to Europe, by one percent, to the U.S., by 30 percent, and to Argentina, by 30 percent, was offset by the rapid increase in exports to China,” said the Minister during a live interview on the BTG Pactual channel on Youtube.

According to Guedes, it was perceived between late February and early March that the coronavirus would be a pandemic that would also impact Brazil. “We launched measures immediately,” said the Minister, who added that the number of recipients of the Bolsa Família (Family Grant) was increased. “There was a waiting list for the Bolsa Família because there is always fraud, but we ordered everyone to be included at once”, he said.

Exchange of Ministers

Guedes also said that President Jair Bolsonaro may swap command of Ministries if there is a “big disagreement” over what to do during the fight against the novel coronavirus pandemic. According to him, the health aspects must be considered, but also the economic ones.

“If there is an exacerbated divergence of opinion, it is not the Minister who chooses the President, it is the President who chooses the Minister, and it doesn’t imply any neglect to preserve lives,” said the Minister.

Guedes said that some economic sectors can maintain a degree of social distancing, with adequate protection for workers, but without actually adopting social isolation, so that the economic system may continue to operate, with the supply of food and other essential services.

According to the Minister, the government’s aid to casual workers is expected to reach between R$110 billion (US$22 billion) and R$114 billion, according to the economic team’s latest calculations. He said the taxi drivers’ category has been included in the group of professionals who will be granted the aid. Guedes also recalled that it was President Bolsonaro himself who asked for the aid to be increased from R$500 to R$600 monthly, showing concern for the protection of the most vulnerable.

Guedes pointed out that there are people who suggest that tax collection be suspended for a certain period of time, in order to provide relief to companies. However, the Minister said this could not be done because it would disrupt the economic system. In his opinion, depending on the way the country reacts to the first wave of the pandemic, the government could intensify (or not) the fight against the second wave, which is more economic in nature.

Source: Estadão Conteúdo