Finance Minister Fernando Haddad reaffirmed on Friday (11) that the “Brazil has a protective mattress against external turmoil”. According to the minister, the country currently has foreign exchange reserves, a good commercial balance and a super crop to face the possible risks associated with the taxes being used by US President Donald Trump.
“There is a movement that we need to see how it will end. But as in other seizures, as in 2008, when we live a huge financial crisis, Brazil now has $ 75 billion to $ 95 billion commercial balance. Brazil has over $ 300 billion currency reserves.”
The minister recalled that Brazil has trade with the whole world and only opens markets since President Lula inaugurated his term.
“We are in a situation where we owe nothing to anyone,” he said.
“Since paying its foreign debt, it has accumulated commercial balance and maintains currency reserves, Brazil has a protective mattress to defend itself from external turmoil. This has happened in 2008 and can happen now,” he said.
For the minister, although it is still difficult to predict its effects, the tariff may somehow contribute to the increase of Brazilian exports and also accelerate Mercosur’s agreement with the European Union.
“Brazil, in my opinion, has a privileged position due to the fact that their exports increase to the three major economic blocks. We export more to the United States, the European Union and China. We have a free trade agreement signed with the European Union that, in my opinion, will be accelerated by what happened,” he said.
“Brazil can face any external situation and is able to overcome it. But of course if the world is bad, that’s bad for everyone,” he warned.
The minister admitted that Gross Domestic Product (GDP, sum of goods and services produced in the country) may suffer some consequence due to the current world economic scenario.
“We can eventually judge for movements, suffer some impact,” he said.
The minister estimates that the Brazilian economy should close this year with growth of 2.5% And that inflation can again “behave in the most appropriate levels” throughout the year.
The statements were made in an interview with BandNews TV.
