Brazil Calls IMF’s Report on Country’s Economy Wrong and Stupid

Finance minister Guido Mantega from Brazil For Brazil’s Finance minister Guido Mantega the International Monetary Fund’s assessment that Brazil’s fiscal situation is worsening and putting at risk the government’s targets is “totally wrong” and “stupid.”

In a report on the global fiscal situation the IMF said that “deterioration in Brazil’s fiscal accounts is particularly pronounced.”

The government is expected to miss by a “wide margin” its 2011 target for a budget surplus before interest payments equal to 3 percent of gross domestic product, the IMF report said.

Mantega, speaking to reporters in Brazilian capital Brasília, said he tried unsuccessfully to call IMF Managing Director Dominique Strauss-Kahn this morning to discuss the report and will try reaching him again later.

“I think the managing director of the IMF must have gone on vacation and some of the orthodox, old men of the IMF got distracted and wrote this stupid thing about Brazil,” Mantega said. “It’s totally wrong.”

The central government’s budget surplus before interest payment widened more than expected in December, the finance ministry said today. The so-called primary surplus widened to 14.4 billion reais (US$ 8.6 billion) last month, beating all seven estimates in a Bloomberg survey whose median forecast was for a 8.6 billion reais surplus.

The central government’s surplus was 2.16 percent of GDP last year, the ministry said in a report. The target, which does not include contributions from state-run companies and local governments, was 2.15 percent.

Mantega said that Brazil will meet its fiscal targets this year after following the IMF’s advice and increasing spending during the global financial crisis to help Latin America’s largest economy exit recession.

The country’s deficit is one of the lowest in the world, and net debt will fall to 38 percent of GDP this year from 41 percent in 2010, he said.

Carlo Cottarelli, director of the IMF’s fiscal affairs department, told journalists that Brazil doesn’t face any “immediate risk” from a “relatively modest” increase in its deficit this year. Still, the country’s fiscal position could be stronger than it currently is, Cottarelli said.

Mercopress

Tags:

  • Show Comments (1)

  • motah

    md
    This shows where hard work and discipline can lead you.so congratulation to brazil.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s Petrobras Reaches Record and Nears 2 Million Barrels a Day

Brazil’s oil company Petrobras reached the record production of 1,912,733 barrels of oil in ...

After New Scandal Brazil Is All Eyes at Polls at Election Eve

Brazilian President Luiz Inácio Lula da Silva has replaced his re-election campaign chief, Ricardo ...

Brazil Promises to Boost Software Sales by 500%. Some Are Skeptical

Brazil's software sector should rise its exports from US$ 100 million to US$ 500 ...

Africa Cheers Brazilian Win Against US on Cotton Subsidies

The Brazilian Minister of Foreign Relations, Celso Amorim, yesterday visited Gabon, where he met ...

Brazilian Chancellor in the U.S. Drumming Up Business for Brazil

The Brazilian Minister of Foreign Relations, Celso Amorim, addressed a Brazilian and American business ...

Slave Labor Is Not Worse, Just More Visible, Says Brazil

At a hearing on slave labor this week in the Brazilian Chamber of Deputies, ...

31% of Brazilian Homes Still Lack Sewage Collection

According to Brazil’s 2004 Household Survey (Pesquisa Nacional por Amostra de DomicÀ­lios 2004) (PNAD-2004), ...

Africa Wants to Share Money Brazil Will Get from US for Subsidizing Cotton

A ruling by the World Trade Organization (WTO) dispute panel allowing Brazil to retaliate ...

Brazil Hosts UN Conference on Digital Inclusion

For the first time, Brazil is going to host the world conference “Wireless Internet ...