G-20 Summit: Temer says 'there is no economic crisis'

G-20 Summit: Temer says ‘there is no economic crisis’

In Germany for the G20 summit, Brazil Temer told reporters the numbers show Brazil is no longer in an economic crisis
Brazil Politics

President Michel Temer is in Germany to participate in the G-20 summit. In a quick interview with Brazilian media in front of his hotel, he said the economic crisis “does not exist”. “You have seen the last numbers”, Brazil Temer added.

“You can search the data and you will see that the number of jobs is growing, the industry, the agribusiness. There is no economic crisis there [in Brazil]”, the President said.

Positive numbers are the basis for Temer’s optimism

Temer seems to be confident that Brazil will recover quickly after a few positive numbers. The Ministry of Labor, for example, announced a job surplus of 34,200. It was the second consecutive month with the creation of new jobs.

The unemployment rate also fell. From an all-time record of 13.6, it went to 13.3 in May, according to the Brazilian Institute of Geography and Statistics (IBGE). However, Brazil still has 13.8 million out of work.

In the first trimester of 2017 the unemployment rates reached a record high. As of April, 14.2 million Brazilians were out of work. Moreover, in the last year, an additional 2.8 million people lost their jobs, according to IBGE.

When he recommended the reporters look the data up, Brazil Temer was also thinking about positive news in the industry. Brazil industrial production grew more rapidly than expected in recent months, growing by 0.8 percent in April. This resulted in the most productive May for six years.

This is Brazil’s best May performance since 2011 when industrial production rose by 2.7 percent. In IGBE’s annual comparison, this latest advance is the industry’s strongest since February 2014, at 4 percent.

Don’t celebrate yet, say economists

Despite the recent upturn, economists and investors remain pessimistic regarding Brazil’s near future. With scandals crashing ceaselessly against Brazil’s leading politicians and President Michel Temer heavily implicated, some fear economic gains may falter.

It may be too soon to say that the country is really overcoming the economic recession.“There is clearly an improvement in the pace of the industry with two consecutive highs that replace the March loss of 1.6 percent,” IBGE economist André Macedo told Reuters. “There has been a widespread increase in production but we are still far from recovering what has been lost.”