Finance Minister Henrique Meirelles has said that Brazil is on the way out of the country's biggest recession since the country has begun keeping track of its Gross Domestic Product (GDP). According to him, the reversal from the negative scenario was brought by an improved public spending environment, without the need to create more taxes.

"In recent years, the country faced a crisis, the economy went into a downturn, corporate profits were down, the primary balance was down," the minister reported. "The most important thing is that the deficit is now falling, and that we are coming out of the biggest recession Brazil has faced since we started measuring GDP over a century ago," he argued.

Meirelles noted that the country has improved all economic results, and that soon public accounts are going back to equilibrium and the economy will grow again. "As the country grows, creates jobs and generates income, people begin paying more taxes, and with it we expect [public accounts] to gradually get better as a result," he said.

Spending cuts

He recalled that the government is making this transition from recession to growth without increasing taxes and the burden on society. The path chosen to change the country's scenario, according to the Minister, was to cut costs and make public administration more efficient.