According to the newspaper O Estado de São Paulo, financial institutions believe that, after the approval of the Pension Reform, Brazil should start a cycle of economic growth, with new cuts in interest rates.
This, for example, is the thinking of the president of the Japanese insurer Tokio Marine in Brazil, José Adalberto Ferrara. He told the state that the reform, passed in the first round of the Chamber of Deputies, could mark a new cycle of economic growth in Brazil on a sustainable basis.
According to the newspaper O Estado de São Paulo, financial institutions believe that, after the approval of the Pension Reform, Brazil should start a cycle of economic growth, with new cuts in interest rates.
This, for example, is the thinking of the president of the Japanese insurer Tokio Marine in Brazil, José Adalberto Ferrara. He told the state that the reform, passed in the first round of the Chamber of Deputies, could mark a new cycle of economic growth in Brazil on a sustainable basis.
The newspaper also indicates that Goldman Sachs believes that the Reforma could generate a saving of R $ 900 billion in Brazilian public accounts. JP Morgan is betting that the Brazilian Central Bank should cut basic interest rates (Selic), currently at 6.5%, at 0.5% in the next two Copom meetings. This would bring the Brazilian economy's basic interest rate to 5.5% in September. Citibank believes that there will be a reduction of 0.25 percentage points in Selic this month.
However, in the real world, Brazil's investment rate is the lowest in more than 50 years. A survey conducted by economist Manoel Pires, coordinator of the Fiscal Policy Observatory of the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV), shows that the public investment rate fell from 4.06% in 2013 to 1.85% in 2017 (the lowest level ever recorded in the country), to 2.43% in 2018. The rate of private investment has fallen in the last 5 years, falling from 16.85% in 2013 to 13.39% in 2018.
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