Vice President and Minister of Development, Industry, Commerce and Services said that values have risen due to the climate and discharge of the dollar, and also argued that the economy is ‘growing above projections’
During an event with trade unions last Friday (21), the vice president and Minister of Development, Industry, Commerce and Services, brought an optimistic perspective on the Brazilian economy, especially with regard to food prices. Alckmin stated that prices will soon fall, attributing the recent rise to adverse weather factors and the appreciation of the dollar. He pointed out that Brazil’s economy is exceeding expectations and that a favorable climate this year can result in an abundant crop, contributing to the reduction of prices. In addition, Alckmin mentioned that the Federal Reserve, Central Bank of excludes foods from the calculation of inflation due to its climate volatility.
In his speech, Alckmin also addressed the importance of democracy in Brazil, not directly mentioning former President Jair Bolsonaro. He expressed that if Bolsonaro had been reelected, the country could have faced a blow, endangering democracy. Alckmin emphasized that dictatorships promise bread, but end up giving neither bread nor freedom. He celebrated Brazilian democracy, noting that only in a democratic system a factory floor worker, such as the president could be elected three times.
Another point addressed by Alckmin was the process of early deindustrialization in Brazil. He stated that the country became expensive before becoming rich, representing a significant challenge for economic development. During the meeting in São Paulo, union leaders presented several demands, including the end of the work scale 6 by 1 and the income tax exemption for those who earn up to $ 5,000. Alckmin mentioned that the reduction of working hours is a worldwide trend, reflecting changes in global labor dynamics.
Despite good climate perspectives, experts warn of future challenges, especially in the agricultural sector. The budget for agriculture in 2025, approved late, maintains the same value as the previous year, which may limit the growth of the sector. In addition, interest rates is a factor that can negatively impact agricultural development even with favorable weather conditions. These issues emphasize the need for effective economic policies to support Brazil’s growth and economic stability.
*With information from Camila Yunes
*Report produced with the aid of AI
