President Dilma Rousseff’s government will announce a strategy next week to kick start the Brazilian economy without causing it to overheat or fuel inflation, sources in the administration said on Thursday.
The attempt to pull Brazil out of its worst recession in decades will involve opening up state financing for certain industries, infrastructure projects and smaller exporters to save jobs.
But unlike the generous across-the-board credit policies that weighed heavily on Brazil’s fiscal accounts during Rousseff’s first term, the new strategy will not involve subsidized loans and will be directed at very specific sectors.
“Heating up the economy and fighting inflation can be contradictory. The government needs a strategy to reconcile the two things,” said a source in the Planalto presidential palace.
Brazil Energy Insight 
Leave a comment