Roberto Campos Neto, President of the Central Bank, Discussed Interest Rates, Unemployment, and Inflation

Campos Neto Participated in Hearing at the Chamber of Deputies to Discuss GDP, Inflation, and Unemployment Projections

Roberto Campos Neto, President of the Central Bank, in a hearing before the Consumer Defense Commission of the Chamber of Deputies, cited some forecasts from financial institutions regarding the growth of the Gross Domestic Product (GDP – the sum of all goods and services produced in the country) ranging from 1.5% to 2%. Today, the forecast is for a 1% increase.

Roberto Campos Neto presented the Central Bank’s outlook on GDP growth in 2022. He mentioned some indicators from important sectors of the economy, such as services. “We have seen upward revisions for Brazilian GDP. Brazil is one of the few countries that had its GDP revised upward. We’ve heard many talking about growth of 1.5% and 2%,” said Campos Neto in the Chamber of Deputies.

Roberto explained that the pandemic increased the demand for goods. This demand has persisted even after the resumption of in-person activities in the country. He explained that a higher demand for energy, combined with low investments in the sector, contributed to the maintenance of global inflation. To curb inflation, central banks around the world began to raise interest rates. “The world is starting to raise interest rates, and Brazil was ahead. We raised interest rates well; it was one of the first countries to publicly say that it understood the inflation problem would be more persistent,” he said.

Campos Neto Discusses the Unemployment Rate Released by IBGE 

The Brazilian Institute of Geography and Statistics (IBGE) announced on Tuesday, the 31st, that the unemployment rate in the first quarter of this year was 10.5%. Regarding the unemployment figures, the President of the Central Bank highlighted that he expects the numbers to remain below double digits by the end of the year.

“It was a quite positive surprise. In terms of the unemployment rate, when we look at the quarter, it was 10.5%. We are starting to talk about unemployment this year being below double digits. Remembering that before the pandemic, it was at 12%, so we are already at a much better level than before the pandemic,” he said.

Average Income of Brazilian Workers Decreases 

On the other hand, IBGE recorded a drop in the average income of Brazilian workers. In the first quarter of 2021, the average income of Brazilians was R$ 2,790.00. Today, the average income is around R$ 2,569.00, which is a reduction of 7.9%.