The reconstruction expenses can be politically complicated, but if the government follows this course, it could advance towards faster and longer economic growth
It is difficult to justify the crime with the lack of Work. The vacant place of 7% in the first quarter was the lowest for this period of the series started in 2012. The highest rate of the series, 14.9%, was recorded in the first three months of 2021, according to the Brasilian Institute of Geography and Statistics (IBGE). In addition, the usual real income of the worker, $ 3,410, was 4% higher than that of a year ago. The mass of the real performance, R $ 341 billion, was stable in the quarter and exceeded 6.6% a year earlier.
The improvement of employment and income is already manifested in the consumption of families, according to retail information. Sales have been reported 2.48% more than those of the initial quarter of 2024 Brazilian Supermarkets Association (Abras). Purchases may also have been facilitated by the release of R $ 12 billion through the Service time guarantee fund (FGTS) and from the funds of the program Sick.
These data seem to give credibility to the projections of economic growth near 2.5%. These projections, collected on the market, have supported the optimism shown by the government’s economic team. But effective growth will also depend on the trust of entrepreneurs, on the evolution of commissions and external conditions.
If entrepreneurs are able to bet on the safety of public accounts and on the maintenance of endured interests, their optimism could support both the economic performance and the growth of this year in the near future. The determination of the interest will depend on the inflation and evaluation of trends by the monetary policy committee (Copom), the main definition of the orientation of the Central Bank (BC). The trend of prices should largely be the tax scenario, that is, the evolution of the government’s accounts and in particular the direction taken by the public debt.
Inflation, its trend and even the official debt will substantially depend on the evolution of federal expenses, that is, the inclination of the president Luiz Inacio Lula da Silva. After a certain caution in the first two years of charge, the president let himself manifest his expense impulse more freely, despite the prudence defended by the Minister of Finance. The alternative to the moderation of expenditure would be the increase in revenue, but this would depend mainly on an increase in the tax burden. An apparent increase in taxation would be politically disastrous, as well as economically unacceptable.
To continue to encourage the employment and improvement of the conditions of families, the safest path to the government and the country will be a more careful and transformative administration of public accounts. This can involve a bold revision of the union spending structure, with less waste, more productive expenses and greater prudence in relation to public debt. The reconstruction costs can be politically complicated, but if the government follows this course, it could advance towards the faster and longer economic growth. At the moment, the existence in Brasilia is not even perceived by a project with clear growth objectives, productive reconfiguration and structural strengthening of the Brazilian economy.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
