Brazil became the eighth largest economy in the world this year and has good indicators, said the vice president and minister of Development, Industry, Trade and Services, Geraldo Alckmin, on Thursday (25) when participating in the Korea-LAC Trade and Innovation Forum in Rio de Janeiro. Among the positive indicators, Alckmin highlighted the drop in country risk from 254 points to 160 points, the reduction in inflation from 4.5% to 3.7%, the drop in unemployment from 8.3% to 7.1% and the approval of tax reform.
Alckmin said that the tax reform simplifies and stimulates investment and exports because it completely exempts investment and exports. “It puts an end to cumulation. This should give our economy a boost,” added the minister, citing a study by the Institute of Applied Economic Policy (Ipea) that predicts that, in 15 years, the tax reform could increase Brazil’s Gross Domestic Product (GDP) by 12%, investments by 14%, and exports by 17%.
For him, another positive factor was the expansion of the Southern Common Market (Mercosur), with Bolivia’s entry into the bloc. Alckmin recalled that Brazil alone accounts for half of the GDP of all of South America and presents good investment opportunities in several areas, such as renewable energy, low-carbon hydrogen, SAF (Sustainable Aviation Fuel), the health industrial complex, the aeronautics sector and, in particular, technology. With the Inter-American Development Bank (IDB) and the Eximbank of South Korea, Alckmin stated that he is certain that the country will “advance even further in this work.”
He also made it clear that Brazil is committed to democracy and development.
Alckmin expressed his satisfaction at participating in the forum hosted by South Korea, a country with which Brazil has had 65 years of diplomatic relations, friendship and partnership, as well as important trade relations and reciprocal investments. Major Korean companies are based in Brazil, such as Hyundai, which has factories in the cities of Piracicaba and Araraquara in São Paulo. “I am certain that this meeting will further stimulate our foreign trade, our economic complementarity and, on the other hand, reciprocal investments.”
Geraldo Alckmin joked with the forum participants, saying that South Korea brings Brazil luck, because the last World Cup in which Brazil was champion took place in Korea and Japan.
