The slowdown in China’s economy should hamper the growth of Brazil and other Latin American countries, according to the president of the Brazilian Central Bank, Roberto Campos Neto.
According to Neto, the Covid-19 pandemic, the Chinese real estate crisis and the aging of its population are among the main factors in the Asian country’s decline in growth.
“I think the concern is that slower growth in China could hamper Latin America’s growth and Brazil’s growth. I think the main point is to understand that this process will happen in such a way, and to take the measures, and reinvent yourself so that it has the least possible effect”, said the president of the BC, in an online lecture.
Central Bank of Brazil ‘the most aggressive’ in inflation containment measures
“We are starting to see, and the Chinese authority itself has said, that we are going to see China’s growth closer to world growth”, Neto added.
The BC president once again highlighted that the inflation trend in Brazil is still growing. According to him, the increase in prices in the country is being driven mainly by the energy sector.
“We actually see an inflation trend that is still growing. Brazil’s inflation, in fact, was one of the highest in the world, at 10.4%, but Brazil had the highest energy inflation in the world, at 5.8%. And if Brazil’s energy inflation had been the average of other countries [around 2%], our inflation would also have been the same as that of other countries [around 6.7%]. Basically what drove Brazil’s inflation above average was energy,” he said.
