The growth of the Brazilian economy in the first semester is equivalent to the most optimistic projections of the market, said today (1st) the Minister of Economy, Paulo Guedes. At an event in São Paulo, he declared that the Gross Domestic Product (GDP, sum of the wealth produced in the country) should end the year with a better performance than expected.
“Of course we are going to grow more”, said the minister, who did not rule out a growth of up to 3% of GDP in 2022. “I discussed this possibility quickly today with the Central Bank”, he commented, without going into details.
According to the Brazilian Institute of Geography and Statistics (IBGE), the GDP grew 1.2% in the second quarter and 2.5% in the first six months of the year. Economic activity is 3% above its pre-Covid-19 level.
In a speech during an event organized by Instituto Unidos Brasil this Thursday, in São Paulo, Guedes said that the Brazilian economy will continue to generate employment and income. According to the minister, the data show that economists’ projections are wrong. “Why are they getting these predictions so wrong? Because they are with the old model”, he commented, saying that the government replaced an old interventionist model of the State.
dividends
During the event, the minister reiterated his intention to take advantage of the discussions of a tax reform to allow the correction of the Income Tax table and make the Auxílio Brasil of R$ 600 permanent. Yesterday (31), the Planalto Palace sent a message together with the 2023 Budget project, justifying that these issues should be left for an eventual reform in the Income Tax.
“How are you going to defend that we are a very important country, that we have to remove the subsidy? Then you say: ‘put your hand in your pocket, pay 3% tax’”. And they answer: ‘I don’t want to’. Can not. This is a morally incorrect attitude. We lose credibility, strength, the respect of the population if we don’t pay tax on profits and dividends,” she said.
According to the minister, only a tax reform can make the readjustment of Auxílio Brasil permanent. He said that the eventual declaration of a state of calamity because of the prolongation of the war in Ukraine would be an idea, but stressed that this option is temporary and would not be a good alternative.
