Brazil emerging from recession, says economy chief

Brazil’s economy is officially emerging from recession, and the challenge now will be to expand productive capacity, Minister of Economy Paulo Guedes said.

“Today we received the news that Brazil is officially coming out of the recession,” Xinhua news agency quoted Guedes as saying on Friday at the 39th National Meeting of Foreign Trade (Enaex), referring to the Central Bank of Brazil’s Economic Activity Index, which showed 9.47 per cent growth in the third quarter compared to the second quarter.

Although official economic growth figures have yet to be released by the National Geography and Statistics Institute, the bank’s index is an indication the recession caused by the coronavirus pandemic has ended.

Guedes said his “working hypothesis” is that the outbreak is on the decline and a “vaccine is arriving” soon.

“Brazil is succeeding in the fight against the disease. That is a fact that is happening on the side of healthcare.

“On the side of the economy, it is a fact that Brazil is coming out of the recession,” he said.

Guedes also noted public-sector workers “patriotically accepted” a wage freeze this year and in 2021 as a way to help cope with the economic impact of the pandemic.

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