Economy

Brazil warns of the perils of a closed economy ahead of G-20 talks

CNBC
16/03/2017 20:13
Visualizações: 1711 (0) (0) (0) (0)

Brazil's finance minister has said that he is ready to listen to the U.S.'s policies on trade at this weekend's G-20 meeting but speaks from experience when he says he believes a free economy is better for everyone.

 

"Brazil actually has experience of closing down its economy," Henrique Meirelles told CNBC Thursday.

 

"The productivity rate of the Brazilian economy came down as a result, growth in the longer-term came down, and the bottom line was actually less growth, more inflation."

 

Once one of the world's fastest-growing economies, Brazil has recently been beset by economic turmoil and is currently battling a two-year recession, its worst on record.

 

In 2013, the country ranked as one of the world's most closed economies, with international imports and exports accounting for 27.6 percent of GDP, well below the 85 percent expected for an economy of its size.

 

Meirelles said that the country is now making significant gains after implementing new reforms to tackle the downturn, including 20-year spending caps to manage public debt levels.

 

"We are already seeing positive numbers for the first quarter and we are expecting growth to be accelerating throughout the year," he said, anticipating all reforms to be in place by the second half of the year.

 

This should go some way to improving investor confidence in the country. Rating agency Moody's updated its outlook on Brazil to stable Wednesday after having been held at a negative rating following economic losses and a political corruption scandal which mired the former government.

 

"This government has adopted a clearly pro-market, free-market approach," Meirelles said of the reformed Brazilian administration.

 

"As a result, investors are feeling more confident, are coming back to take advantage."

 

Meirelles' comments come ahead of a G20 summit meeting this weekend in which the U.S. Treasury Secretary Steve Mnuchin is expected to discuss the U.S.'s new trade stance.

 

 

 

Most Read Today
see see
ROG.e 2026
Camorim invests R$ 250 million in 2026 to expand fleet a...
18/09/26
ROG.e 2026
Firjan SENAI SESI Presents New Technologies at ROG.e Dev...
18/09/26
ADIPEC 2026
ADIPEC 2026 to mobilise investment in resilient, intelli...
18/09/26
Acquisition
CoreMarine takes a decisive step to expand its offshore ...
17/09/26
ROG.e 2026
M&O and Belga Marine to Showcase Global Energy and Offsh...
17/09/26
26th WPC
WPC ENERGY announces the theme, date and location for it...
16/09/26
New Contracts
Petrobras awards Strohm a contract to supply thermoplast...
15/09/26
ROG.e 2026
Equinor Celebrates 25 Years in Brazil and Showcases Its ...
15/09/26
ROG.e 2026
Sindicom to Host Lubricants Arena at ROG.e 2026
15/09/26
ROG.e 2026
ROG.e 2026 Expected to Generate R$ 593 Million for Rio d...
14/09/26
ABPIP
Independent Producers Propose Nine Measures for the Next...
14/09/26
Products and Services
RiverTough Bearings and Seals
05/09/26
International Company News
OES Group Returns to Private Ownership Following Managem...
31/08/26
Pre-Salt
Petrobras platforms P-80 and P-82, which will operate in...
31/08/26
Royalties
Values related to June production were distributed to st...
27/08/26
People
bp appoints Felipe Arbelaez head of country for Brazil
27/08/26
ROG.e 2026
ROG.e 2026 brings global leaders together to discuss the...
26/08/26
Pre-Salt
Búzios field sets monthly and daily natural gas export r...
26/08/26
Navalshore
Firjan SENAI presents the Supplier Opportunities Network...
17/08/26
Equatorial Margin
Morpho Well: Petrobras discovers hydrocarbons in ultra-d...
15/08/26
Power Generation
Campo Grande hosts four days of debates on bioenergy and...
12/08/26
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.