Brazilian officials have ruled out exceptional measures to boost growth, focusing instead on existing contracts. The government’s revised growth predictions account for tightening monetary policy and recent job data suggests mixed economic signals. Official GDP figures are set to be released soon.
Brazil’s government, under President Luiz Inacio Lula da Silva, has confirmed there will be no extraordinary measures enacted to stimulate economic growth, as affirmed by Chief of Staff Rui Costa during a BTG Pactual event. Costa emphasized that growth would proceed based on current contracts rather than new initiatives and expressed a positive outlook on the Brazilian currency while assuring adherence to fiscal regulations.
Costa’s statement follows remarks from Labor Minister Luiz Marinho, who suggested that new economic support measures might be on the table, though he clarified that such decisions fall outside his purview. This discourse comes in the wake of encouraging job creation statistics for January, despite some indicators that suggest an economic slowdown.
Earlier this month, the government revised its 2025 economic growth forecast downward to 2.3% from 2.5%, reflecting the impact of strict monetary policy which has raised benchmark interest rates to 13.25%. Projections indicate a slowdown relative to the anticipated 3.5% growth for 2024, with official GDP data due to be released in early March.
Brazil’s administration remains committed to its fiscal framework and projects cautious economic growth based solely on existing contracts. Despite some optimism expressed by government officials regarding currency stability and job growth, lower growth forecasts reflect the impact of tightening monetary policies. The upcoming GDP data may provide more insight into the country’s economic trajectory.
Original Source: www.tradingview.com
