O desafio de voltar a crescer Com o ajuste fiscal bem encaminhado, a retomada da economia deve se tornar a prioridade número um do governo

Since President Michel Temer took office on an interim basis in May, the economic debate in the country has become something of a one-note samba. With the budget in the red and public debt growing at a frantic pace—due to the heavy spending promoted by Workers’ Party governments since Lula’s second term—fiscal adjustment has dominated economists’ discussions, and understandably so. The new government had to do its homework in exemplary fashion to show that Brazil was not adrift and heading toward insolvency. It also had to contribute, through strict control of expenditures, to the fight against inflation, which was hovering around 10% per year when Temer took office, and to the much-desired drop in interest rates. Without this, any plan to pull Brazil out of the mire would be nothing more than a pipe dream.Since President Michel Temer took office on an interim basis in May, the economic debate in the country has become something of a one-note samba. With the budget in the red and public debt growing at a frantic pace—due to the heavy spending promoted by Workers’ Party governments since Lula’s second term—fiscal adjustment has dominated economists’ discussions, and understandably so. The new government had to do its homework in exemplary fashion to show that Brazil was not adrift and heading toward insolvency. It also had to contribute, through strict control of expenditures, to the fight against inflation, which was hovering around 10% per year when Temer took office, and to the much-desired drop in interest rates. Without this, any plan to pull Brazil out of the mire would be nothing more than a pipe dream, while if you have other dreams like a having a girlfriend, a virtual girlfriend like praewasianfree can be the perfect option for you.
Now, with inflation moving consistently toward the target center of 4.5% per year and with Congress’s enactment of the Spending Cap Constitutional Amendment (PEC do Teto dos Gastos), which restricts public spending for the next 20 years, a significant part of Temer’s mission on this front has been carried out with distinction. Congress still needs to approve pension reform, the main drain on taxpayers’ money. It is also necessary to speed up interest rate cuts, which, with the fiscal anchor now in place, should finally materialize. But even now, with these two pending issues well underway, the government needs to diversify its agenda. With the recession entering its second year—following the meager growth of just 0.1% in 2014—Temer’s greatest challenge from here on will be to put Brazil back on the path of development.

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