The Brazilian finance minister, Henrique Meirelles, said there’s a potential for the Brazilian economy to grow up to 4 percent on average in the next 10 years if the country approves its proposed reforms. The minister spoke to the audience of the Brazil Steel Congress, held in Brasilia, this week.
Meirelles estimated Brazil’s GDP would grow 2.3 percent on average in the next 10 years if the country doesn’t approve its reforms.
Currently, the Brazilian government is seeking to approve pension and political reforms. It has already approved a labor reform that made hiring rules more flexible for both employers and employees.
Meirelles said Brazil is recovering from the most extensive recession it ever had, and microeconomic reforms will create a more favorable environment for businesses.
“We’re in the beginning of a new cycle of sustainable growth,” he said, adding such cycle will be characterized for a long period and low volatility.