Guedes predicts 5 to 5.5-percent GDP growth

Economy Minister Paulo Guedes told Congress on Wednesday that Brazil’s GDP will grow “around 5 to 5.5 percent” this year. Speaking before a congressional committee, Mr. Guedes praised the country’s economic recovery in the midst of the coronavirus pandemic — which he believes to have been better than other developed nations — and asserted that Brazil is surprising the rest of the world.

The forecast is considerably higher than the 3.5 percent projections made by the Economy Ministry itself, and by the Central Bank, which forecast growth at 4.6-percent. The median predictions of market analysts sits at 5.18 percent, according to the Central Bank’s Focus Report. These forecasts have increased over 11 consecutive weeks.

During his remarks, Mr. Guedes supported a proposal to tax dividends and profits. The ministry said the rich should not feel bad for being rich, but that they should “feel ashamed of not paying taxes.”

Mr. Guedes was initially summoned by Congress’ Oversight and Control Committee to answer questions about discrepancies regarding military pensions found by technicians from the Federal Accounts Court (TCU). However, he ended up dedicating his speech to the government’s role during the pandemic.

• #recovery