The global financial crisis will not lead Brazil into an economic recession, Finance Minister Guido Mantega said Thursday.
At a public hearing held by a Senate economic committee, Mantega and Brazil's Central Bank President Henrique Meirelles explained the steps taken by the government to tackle the worldwide financial downturn.
A strong economic deceleration in the developed countries is inevitable, and "those countries must take measures to prevent a recession as the Great Depression in 1929," Mantega said, noting that the economic recession would not be duplicated in Brazil.
"I believe there will be a deceleration in consumption and some economic activities in Brazil, but not a recession," the minister said, adding that taxation was also likely to decrease.
Though the worst part of the crisis may already be over, it is necessary to pay the utmost attention to the economy, he said.
The government has no immediate plans to make budget cuts, he added.
He also commented on the losses suffered by several large Brazilian companies that had invested in financial derivatives and expressed his confidence that they would recover from the crisis.
Source:Xinhua
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