Banker says that the growth of the Brazilian economy is more important than fiscal adjustment
Global Santander President, Ana Botín, states that the fiscal issue will be aided by falling interest rates and predicts what she calls a "virtuous cycle" of the national economy
247 - The global president of Grupo Santander, Ana Botín, unlike the national "financial market", does not believe that a potential non-compliance with zero fiscal deficit will cause significant problems. For her, the most important thing is for Brazil to grow significantly.
"The most important thing is that we start growing again. Fiscal accounts will balance if we can grow," said Ana Botín, in an interview with journalists in Madrid, Spain, as reported by Folha de S. Paulo.
She was commenting in response to recent statements by President Lula, who last Friday said it will be challenging for the federal government to achieve a zero deficit target in 2024, as advocated by the Minister of Finance, Fernando Haddad.
According to Botín, Brazil is on track to register economic growth above the global average this year, projecting a 3% increase in Gross Domestic Product (GDP).
She states that the fiscal issue will be assisted by falling interest rates. She even predicts what she calls a "virtuous cycle" of the Brazilian economy. "We are very optimistic about Latin America. Today, we see [the region] in a really attractive way, and there are countries like Brazil, which, with falling interest rates, reduces the cost of internal debt and this greatly aids fiscal accounts," Botín said.
"We might have a scenario in which Brazil enters a virtuous cycle, unlike what we haven't experienced in recent years. With a solid currency, intermediate interest rates, and also enough fiscal space to simplify its monetary systems and to invest more in policies of equality, capital, labor, and infrastructure," she added.