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Brazil minister sees annualized growth at 2% pace by year-end

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Staff Writer | August 28, 2017
Brazil’s economy could be growing at a pace of 2 percent in annualized terms by year-end, Finance Minister Henrique Meirelles said.
Henrique Meirelles
LatAm   An event in Campos do Jordao
Speaking at an event in Campos do Jordao, Meirelles said efforts by large and small companies alike to reduce debt and downsize their businesses will be key to helping resume growth.

Those moves, coupled with increased household spending over the past weeks, should ensure that “the economy returns to normal,” Meirelles said. “Some sectors are showing evidence that a recovery is under way, which will surprise many out there.”

His remarks reflect optimism that President Michel Temer’s strategy of curtailing state action and allowing private investors to take up the slack has borne fruit. Meirelles said such a tack has allowed the private sector to take space in the economy from the government for the first time in 30 years.

As part of a series of policy announcements, Meirelles said a revision of Brazil’s bankruptcy protection law will create mechanisms allowing companies to borrow during their restructurings.