Brazil&#039s Meirelles claims S&P downgrade will not have an effect on growth

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Brazilian Finance Minister Henrique Meirelles mentioned on Saturday that a modern final decision by Regular & Poor’s to lower the nation’s credit history rating will not have an effect on 2018 economic growth.

Brazil’s Finance Minister Henrique Meirelles, walks right after a information conference in Brasilia, Brazil January twelve, 2018. REUTERS/Ueslei Marcelino

RIO DE JANEIRO: Brazilian Finance Minister Henrique Meirelles mentioned on Saturday that a modern final decision by Regular & Poor’s to lower the nation’s credit history rating will not have an effect on 2018 economic growth.

Speaking to journalists in Rio de Janeiro, Meirelles additional that he was expecting close to two.5 million careers to be produced in Brazil this 12 months and gross domestic product or service growth of all over 3 per cent.

“The reaction to the rating is increased than the rating alone,” Meirelles mentioned. “The issue is, ‘Will this have an effect on growth?’ And the solution is, ‘No, growth will continue.'”

On Thursday, rankings agency S&P decreased its prolonged-phrase sovereign personal debt rating for Brazil to BB- from BB, as uncertainties develop about a presidential election in October and a push to trim the country’s pricey pension method.

Marketplaces have so far shrugged off the downgrade, which was commonly anticipated right after Congress delayed a pension reform vote from 2017 to this 12 months, generating its passage much less possible.

On Saturday, Meirelles reiterated to journalists that it was crucial for the government to pass the pension reform, a undertaking which is getting to be extra difficult as elections tactic and politicians request to length them selves from the unpopular evaluate.

(Reporting by Rodrigo Viga Gaier Creating by Gram Slattery Enhancing by David Gregorio)



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