Brazilian economy on recovery mode: Minister

Brasilia: During a Senate hearing held by a congressional commission on Covid-19, Economy Minister Paulo Guedes said that despite coming close to facing a fiscal collapse, the Brazil economy is now in recovery mode, and only the losses created by the pandemic shall affect future generations

"We were hit, and we spent a lot of money, but we have been regaining control of the situation. We were sinking fast, but we quickly came out of the abyss, and now we are creating jobs," Guedes said.

"Brazil could have been facing a situation of fiscal collapse, but we managed to control that sentiment, and we are now normalising everything again," he added.

The Minister confirmed the extension of emergency pandemic aid for informal sector workers and the unemployed for another three months. By then, the pandemic in Brazil is expected to be under control after the entire adult population has received at least one dose of the Covid-19 vaccine.

"The expectation, in the words of the Minister of Health, Marcelo Queiroga, is that (by October) we will be in an environment of pandemic control. That is the idea and that is what led to the extension of emergency aid until the end October," said Guedes.

Guedes also presented the budgetary situation of the various measures to combat the pandemic and submitted a tax reform bill raising the taxable minimum for paying personal income tax.

Presently, Brazil has the third most active covid cases after the US and India. In terms of Covid deaths, Brazil has witnessed the most covid casualties after the US.