For 2017, the Brazilian government’s official number is 1% growth, with the recovery starting already in the first quarter.
However, according to O Estado de S. Paulo newspaper, the Minister of Finance, Henrique Meirelles, has already admitted in private conversations with members of Congress that the economy should something around 0.5% in 2017. for the last quater of 2016, a decline of 0.5% quater over quater GDP. Minister Meirelles also said that he believes the worst in the economy is already over.
Besides, the recent interest rate cut should boost the economy. Nevertheless the minister admits that employment levels should not rebound soon.
A touch of irony?
Regarding the BCB’s decision to cut interest rates, Meirelles commented that: “contrary to what happened in the past, the interest rate reduction is now solid. It is based on falling inflation.” (My personal opinion is that he is right. It is important to stress the differences between the Temer’s vs Rousselff/Lula’s administrations).
Source: Bradesco BBI Briefing and Estado de São Paulo http://politica.estadao.com.br/blogs/coluna-do-estadao/o-pior-na-economia-ja-passou-diz-henrique-meirelles/