Brazil is cheap for foreign investors – Economy Minister

RIO DE JANEIRO, BRAZIL – Brazil’s Economy Minister Paulo Guedes argued that Brazil is cheap for foreign investors and said that “gringos” entering Brazil at the moment, with the dollar quoted near R$5.50, will be able to leave with the currency at R$3 in “two or three years”.

At an event organized by BTG bank on Tuesday, May 25, Guedes said that he is attending fewer road shows with investors than past ministers, but said that the country will inevitably have to turn to the markets. “First you have to work to then sell Brazil,” he added, referring to the reforms planned by his administration.

The Minister said again that the bill for the coronavirus pandemic can’t be left for the next generations. “We are not going to transfer the pandemic debt to 100% of GDP,” he added.

At the start of his speech, Guedes said he wanted to “congratulate all the economists who have been part of the government.” “Before joining the government, I thought it was all very easy, it’s not quite so,” joked the Minister, who has been in office for two years and five months and has conducted some tough negotiations with the National Congress.

Revenue collection and deficit projection

Guedes further said that with the successive positive results in tax collection, the government is reviewing downward the projection of public deficit this year. “The deficit projection stood at R$280 (US$52.5) billion two weeks ago. Collection has been so remarkable that we are revising it down to R$180 billion,” he commented.

He also stated that investments in infrastructure are required for Brazil to become integrated with Latin America, but again said that the country can not be restricted to MERCOSUR.

“Brazil must be the anchor for large investments and overflow production to Latin America. We will not be stuck to the region, it was a mistake, MERCOSUR has imprisoned us,” added the Minister.

Source: Infomoney

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