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NEW YORK – Brazil's growth forecast of 2.5% in 2019 and 2.2% in 2020 by of the International Monetary Fund estimates that the ceiling for Federal spending will be respected in those years, commented Alejandro Werner, director of the IMF's Western Hemisphere Department.
"The approval of social security reform is an important element for the realization of the spending ceiling, which is implicit in our badessment of social security reform or other changes that this ceiling, "he said. .
Werner emphasized that social security reform is a key factor in bringing the country's public finances to a sustainable level. "The public debt in Brazil is very high and tends to grow in the coming years," he said.
"The Bolsonaro administration said it was very willing to balance public finances.The Bolsonaro administration program is well established to strengthen public finances and government feedback to speed up trade liberalization, "he said. "Let's look carefully at future government announcements regarding pension reform."
According to the IMF director, the intention of the executive power to open a trade can have a significant impact on the increase of investments in Brazil. "The sustainability of public finances and the liberalization of trade will be positive to increase the country's GDP potential," he said.
Growth in Latin America is expected to rise from 2.0% this year to 2.5% in 2020, largely due to the expansion of Brazil and the recovery of the Argentine economy, said Werner.
"Brazil has a program of fiscal consolidation and a very important trade liberalization.The stages of the implementation of these policies will determine the pace of the economic expansion of the country in the years to come, "said Werner. The IMF has raised Brazil's growth forecast for this year from 2.4% to 2.5% and reduces its GDP estimate from 2.3% to 2.2% in 2020.
For him, Argentina is resuming the level of activity with the measures adopted by the government of President Maurício Macri and is expected to show better results of the gross domestic product in a few months.
According to the IMF director, the multilateral institution follows the latest political developments in Venezuela and says that "there is no sign" of a reversal of the decline in the GDP this year.
According to Werner, Latin America is subject to global uncertainties such as trade disputes and difficult financial conditions. "Global markets are doing well in early 2019, but fluctuations in volatility could be repeated throughout the year, as in 2018." (F, f, b, e, v, n, t, s) {if (f.fbq) returns; n = f.fbq = function () {n.callMethod? n.callMethod.apply (n, arguments): n.queue.push (arguments)}; if (! f._fbq) f._fbq = n; n.queue = n.loaded = 0; n.version = 2.0 & # 39 ;; n.queue = []; t = b.createElement (e); t.async =! 0; t.src = v; s = b.getElementsByTagName (e) [0]; s.parentNode.insertBefore (t, s)} (window, document, script, // connect.facebook.net/en_US/fbevents. fbq (& # 39; init & # 39; ;, & # 39; 1659995760901982 & # 39;); fbq (& quot; Track & # 39; PageView & # 39;);
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