Minister Fernando Haddad, of Finance, signaled this Tuesday (5) that the Brazilian GDP (Gross Domestic Product) should grow 3% this year, mainly due to the third quarter result that contradicted market expectations and closed with a slight increase of 0.1% — until then, projections were for a decline of 0.3%.
The good expectation for the sum of wealth produced by the country was given during the weekly live “Conversa com o Presidente”, in which he was one of the “guests” of Luiz Inácio Lula da Silva (PT) to take stock of his participation in the trip to Middle East and Europe, in addition to a projection of the ministry’s actions in the 11 months of government.
“We will grow 3% this year. We reached a very high interest rate in July, the highest level, and the Central Bank started to cut it in August. So I want to believe that, with the measures we are taking in Congress, approving the measures we have forwarded, including tax reform […] I think Brazilians can expect an increasingly stronger economy”, said Haddad, praising the “legacy” that Lula will leave in government (see excerpt).
Haddad’s forecast is close to the 2.84% predicted by financial market analysts heard by the Central Bank in this week’s Focus Report (see in full) and contrasts with the first analyzes formulated at the beginning of the year, that GDP would grow by 1. 2% according to projections by the International Monetary Fund (IMF). Other entities predicted greater growth, but with a certain pessimism at the beginning of the new government.
The increase in the forecast was recalled by minister Paulo Pimenta, from the Presidency’s Social Communication Secretariat (Secom), who recalled that Lula spoke with Kristalina Georgiev, general director of the IMF, at the beginning of the year, that the institution would be surprised by the growth of the Brazilian economy.
“Do you remember your conversation with that lady from the IMF there in Japan at the beginning of the year? The GDP result for the quarter was recently released, in which the market said it was -0.3%, and grew 0.1%. With this, the Ministry of Planning and Minister Haddad’s team are thrilled because this is the guarantee that this year’s GDP will grow more than 3%, 3.1%, 3.2%”, stated Pimenta (see excerpt ).
In addition to talking about GDP growth, Haddad also explained about some of the agreements signed with Arab countries, such as the expected investment of US$ 10 billion by the Saudi Arabian government in infrastructure works and exploration of critical minerals, in addition to a smaller volume from the Qatari government – not to mention values.
He also stated that the Inter-American Development Bank (IDB) will finance energy transition programs in Brazil, which were agreed during COP28 in Dubai, and that the Prime Minister of Germany, Olaf Schoz, will promote a new round of investments by the country’s businesspeople in Brazil, mainly in the generation of clean energy, exploration of critical minerals and manufacturing production.