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Resuming Growth
Brazil is "coming out of the recession," says Temer to the Financial Times
President Temer gave an interview to the British newspaper - Credit: Beto Barata/PR
In an interview with the Financial Times, President Michel Temer said that the economic measures and reforms being implemented by the government are already paying off, helping lead the country back to the path back to economic growth. The interview was published this Thursday (2 February). "We are coming out of recession,” Temer said.
Regarding the measures to stimulate the economy, the president cited the programme that will allow withdrawals from dormant accounts of Brazil's Guarantee Fund for Length of Service (FGTS), expected to inject up to R$ 30 billion in the economy, as well as the measures taken to reduce interest rates on revolving credit. Last year, those reached 475.8%. With the new rules, consumer spending on interest rates may fall to 70%, representing an annual rate of 153.8%.
The president also highlighted the role of the reforms being led by the government for the resumption of growth. On pension reform, Temer pointed out that it may be passed by Congress as soon as the second quarter of 2017.
Reforms
The President explained to the British newspaper that the labour reform proposal, in Congress late last year, aims to make the country more competitive and attractive to investors while contributing to the fight against unemployment. One of the pillars of the changes is to empower decisions reached between employees and employers in collective bargaining agreements.
Another measure to increase the country's competitiveness cited by Temer in the interview is tax reform, still under study by his economic team. The intention is to reduce red tape for private enterprises. The president also highlighted the reform of Brazil's secondary education system, introduced to make education in the country more efficient. The proposal is now being discussed in Congress.
Attracting investments
Temer also spoke on attracting foreign capital, and highlighted investment opportunities in the Grow programme. He said companies from China, Brazil's largest trading partner, are highly interested in the country's 34 concessions currently being offered for ports, airports, roads and other projects.