Economy

Government says talking about recession is “impossible”

Brazilian Finance Minister Guido Mantega has recently put down the disappointing performance of the country’s gross domestic product (GDP) in the second quarter

Agência Brasil
01/09/2014 16:38
Visualizações: 1383 (0) (0) (0) (0)

 

Brazilian Finance Minister Guido Mantega has recently put down the disappointing performance of the country’s gross domestic product (GDP) in the second quarter—down 0.6 against the previous period—to the low international demand on trade, circumstantial domestic problems (like the drought, which resulted in higher electric energy costs), and the lower number of business days in June, on account of the World Cup matches.

 

“In my opinion, talking about recession is impossible. A recession a prolonged period of stagnation, like the one experienced by European countries, and takes place when there’s unemployment,” the minister argued, adding that Brazil managed to create 500 thousand jobs in the first semester.

 

According to Mantega’s assessment, in spite of the two consecutive quarters with the GDP on the wane, there would have to be more negative results if one were to be sure the country has gone into recession. He went on to note that the first indicators of industrial output for the third quarter of 2014 announce a positive growth rate. The minister further highlighted that the inflation has already showed signs of accommodation and that the salaries remain high.

 

In his view, the domestic consumer market is also expected to react to the reduction in the mandatory deposits an other measures announced last week by the Central Bank, which should increase the capital used in loans. “Our consumer market rises as insolvency falls, and there’s also the possibility of increasing the demand,” he believes.

 

With the latest GDP result below expectations, Mantega said that the government will likely revise the 1.8 percent growth target estimated for this year, but added he hopes that the revision of the result by the Brazilian Institute of Geography and Statistics (“IBGE”) does not confirm the reduction in the index.

 

The minister said that the primary surplus was affected by the unfavorable international scenario, but seemed to believe in better figures in the future. According to Mantega, there are data that indicate an expansion in machinery and equipment sales in the second quarter, which should make an impact in the medium term. “Our surplus is among the world’s largest, and there’s room for an increase yet,” he remarked.

 

Most Read Today
see see
BOGE2026
Smart Control Gains Prominence at Bahia Oil & Gas Energy...
09/06/26
BOGE2026
Bahia Oil & Gas Energy Concludes Historic Edition and Se...
06/06/26
Branded Content
Boaventura Energy Complex drives Brazil’s energy future ...
06/06/26
BOGE2026
Mayekawa do Brasil present at Bahia Oil & Gas Energy
06/06/26
BOGE2026
Benel Marks Presence at Bahia Oil & Gas Energy and Annou...
02/06/26
BOGE2026
Bahiagás Highlights Bahia’s Leading Role in the Energy T...
30/05/26
Investments
Petrobras Announces Investments of More Than R$ 70 Billi...
30/05/26
BOGE2026
Oil States Reinforces Commitment to Innovation and Opera...
29/05/26
BOGE2026
PetroReconcavo Discusses the Future of Oil and Gas at Ba...
29/05/26
BOGE2026
Lumina Group Makes Its Presence Felt at Bahia Oil & Gas ...
29/05/26
BOGE2026
Bahia Brings Together Industry, Innovation, and Business...
28/05/26
Royalties
Amounts related to March production for concession and t...
28/05/26
BOGE2026
Oil & Gas Expansion Boosts Demand for Industrial Waste T...
28/05/26
BOGE2026
BRAVA Energia Marks Presence at Bahia Oil & Gas Energy 2...
27/05/26
IBP
Brazil Can Expand Its Prominence as a Global Energy Supp...
27/05/26
Investments
Petrobras and Transpetro announce R$ 2.8 billion in inve...
27/05/26
International Company News
Jumbo orders a new class of versatile heavy lift vessels
27/05/26
BOGE2026
The Largest Oil and Gas Event in the North and Northeast...
25/05/26
BOGE2026
With production on the rise, independent players lead di...
25/05/26
ANP
ANP Workshop Debates Boosting Oil and Gas Exploration in...
25/05/26
BOGE2026
ANP participates in Bahia Oil & Gas Energy 2026, in Salvador
25/05/26
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.