Dollar, inflation, and interest rates will rise, warned XP Investiments chief economist Zeina Latif during a keynote speech at the year-end event of the National Association of Cereal Exporters (Anec) held in the evening of this Thursday (22), in São Paulo (SP).
“The new government needs to make reform early in the term in order to take advantage of the honeymoon start of management,” Zeina stressed, though, adding that “it can not be any reform, but rather a structural one , as proposed by President Michel Temer.
According to Zeina, the country’s biggest economic challenge is exactly the fiscal deficit, which has its main point in the Social Security accounts. “Effectively, this is not an easy topic, many groups / categories will oppose, and the president-elect will have to negotiate a lot with society and the National Congress.”
External scenario
In the evaluation of Zeina, there is a trend of slowing of the world trade, motivated, among other questions, by the tariff war between US and China. “I think this clash will have new chapters,” he said. “And it’s not just about tariffs, but about topics related to, for example, intellectual property, which the US, on some points, has reason to complain about in China.”
Zeina also drew attention to the need for the Brazilian productive sector to gain productivity. “We are world far behind in this matter. Only our large rural property has income similar to the rates observed in developed countries, “he said.
This text was translated by machine from Brazilian Portuguese.