Fear provides for growth in the late 2017 after disassembling “perverse cycle”

The Chair presented some optimistic projections during a seminar of the National Industry Confederation (CNI).
08/11/2016 10h40 - Updated 8/11/2016 10h40
Photo: reproduction

Emphasizing that his government is removing a "vicious cycle", by which passed the country, President Michel Temer presented today (8), some optimistic projections, according to him, will be derived from the austerity measures that have been adopted. Measures, He highlighted the possibility of, from the second half of 2017, the country return to job creation and to register a Gross Domestic Product "not negative". He also said that, kept trends already observed, expects the country to resume investment grade, by rating agencies.

The president opened, in the morning, the seminar Infrastructure and Development of Brazil, in the auditorium of the National Industry Confederation (CNI). The event is sponsored by the newspaper Valor Econômico, in partnership with the National Confederation of Industry,

"They want the government to assume and two months later the sky is blue. It's not like this. This takes time. The resumption of employment is something that takes. It is gradual and slow, but our hope is that the second half of 2017 GDP is not negative. If not, covering the ", said the president, during the seminar.

The projection of financial institutions to the economic downturn (Gross Domestic Product - GDP - the sum of all wealth produced in the country), this year, it went from 3,30% for 3,31%. For 2017, the expected growth was adjusted 1,21% for 1,20%

"Sometimes I feel in the air that bias. They want to fight unemployment and do not want to encourage private initiative. Our hope is that in view of the pace that we are taking is that in the second half of next year also have the job being resumed ", he added.

Temer said that to make this possible scenario, it is necessary that the government adjust their accounts and attract private investment in strategic areas such as infrastructure. According to him, the country accumulated "growing public debt and unemployment at an alarming level". "Overcoming the acute crisis requires extraordinary work that allows us to move forward. This is a vicious cycle that we are disassembling. Given this fact we find that the pattern of expenditure that has consolidated in recent years has become unsustainable. We must then begin cutting into the meat, therefore limit public spending ", he said.

During his speech, Fearing quoted speeches of former Prime Minister of England, Margareth Tatcher, as a way to justify the Brazilian government's austerity measures. "I saw a speech Tatcher, she said: "look, you know that there is no public money. Money always comes from the private sector. Who is paying you. Or you control, or generosity disappears'. The state is like your company. You can not spend more than it collects. This is the singelíssima proposal PEC public spending ", said the president.

According to him, such care that have been adopted by the Brazilian government will give the country the opportunity to return to investment grade. "Now [the index of the rating agencies] fell from 531 points to 318 points. When the 240 resumed investment grade. We achieved this in just a few months ", said Temer. .

He added that "sequentially or in parallel" to process the PEC of public spending, will send, to Congress, the proposal for Social Security reform. "Approved the ceiling, it is essential to make a pension reform in that country.”

Source: Agency Brazil

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