Ilan Goldfajn said that it is essential to persevere in adjustments and reform of the Brazilian economy to reduce uncertainty

The renewed confidence is crucial to the recovery of the economy, said the president of the Central Bank, Ilan Goldfajn, during an event in São Paulo, on Thursday (22).

Goldfajn also said that it is essential to persevere in adjustments and reform of the Brazilian economy to reduce uncertainty and offer prospects for sustainable growth, and a low and stable inflation in the future.

"For this, we have to strengthen the economic policy framework that has proved successful in the past. I refer specifically to the macroeconomic tripod formed by fiscal responsibility, which are the reforms, fiscal adjustments; control inflation, which is our pursuit of the goal; and the floating exchange rate regime, which allows the exchange is a muffling of shock, "he said.

Challenges and actions

However, Goldfajn also said that there are significant internal challenges in the country. "In the labor market, also noted the continued increase in unemployment and there are losses in real income of workers, although at a slower pace than in the recent past."

The president defended the government's actions related to the balance sheet of the public sector, as the PEC 241, laying down the ceiling of public expenditure accounts, and pension reform. According to him, these actions are important for the resumption of confidence.

economic scenario

On the international economy, the president of BC believes that the world is experiencing what he called "interregnum [temporary interruption] benign" to emerging economies such as Brazil.

"This scenario offers both favorable financing conditions and some recovery in global activity. This is because the growth rate of the global economy is not strong enough to withdrawal of monetary stimulus in most major economies. It is not weak enough to trigger risk aversion increased international investors with adverse effects on the availability of funding sources or to equalize the demand for our goods, "he said.

Source: Portal Brazil, with information from the Agency Brazil