- Title: Brazil's Temer says unemployment, not graft probe, biggest worry
- Date: 16th January 2017
- Summary: BRASILIA, BRAZIL (JANUARY 16, 2017) (REUTERS) BRAZILIAN PRESIDENT, MICHEL TEMER, SPEAKING DURING INTERVIEW (SOUNDBITE) (Portuguese) BRAZILIAN PRESIDENT, MICHEL TEMER, SAYING: "It is a message based on concrete facts, you can see that some time ago, before my government, inflation in Brazil was predicted at 10.7 percent in 2016, and we reached the end of the year within the target, or rather at 6.29 percent. The target was 6.5 percent. Interest rates are also falling in Brazil, first 0.5 percent, now exactly 0.75 percent, precisely after the fall in inflation." TEMER SPEAKING (SOUNDBITE) (Portuguese) BRAZILIAN PRESIDENT, MICHEL TEMER, SAYING: "It is very probable that this semester still, the idle capacity of companies - I call idle capacity the fact that many companies maintained a lot of employees who do not have full productivity - so it is possible that at first instance, the idle capacity can be used by companies, but we think and we have said a lot in the economic area, we think that from the second semester onwards, or half way through the second semester, unemployment will begin to reduce and growth with come once and for all." TEMER SPEAKING (SOUNDBITE) (Portuguese) BRAZILIAN PRESIDENT, MICHEL TEMER, SAYING: "Unemployment - you know that when we take these measures, our concern is to put the country back on track! I say that very often because we still have two years to do that, so if Brazil is back on track in two years - on track means on track economically, ethically and morally - then the next government will find the country in order, and be able to make it grow progressively more." VARIOUS OF TEMER SPEAKING (SOUNDBITE) (Spanish) BRAZILIAN PRESIDENT, MICHEL TEMER, SAYING: "The Chinese have invested a lot in Brazil, the truth is that it is our greatest commercial partner after the United States. I do not think that this will change our relationship with the United States, on the contrary, I think the United States will have even greater intentions of investing in Brazilian companies, I have no doubt, and China will continue investing." VARIOUS OF MICHEL TEMER SPEAKING WITH JOURNALISTS
- Embargoed: 30th January 2017 20:13
- Keywords: Michel Temer Brazil economy inflation unemployment
- Location: BRASILIA, BRAZIL
- City: BRASILIA, BRAZIL
- Country: Brazil
- Topics: Government/Politics
- Reuters ID: LVA0015ZC0B43
- Aspect Ratio: 16:9
- Story Text: Brazil's priority this year will be job creation as its economy emerges from the worst recession on record, President Michel Temer said on Monday (January 16), dismissing speculation that key labor and pension reforms could be derailed by a corruption scandal.
In an interview with Reuters, Temer said that Latin America's largest economy would exit a two-year recession in the second half this year but it would take longer to reduce the ranks of Brazil's 12 million unemployed as companies use idle capacity before hiring new staff.
"It is a message based on concrete facts, you can see that some time ago, before my government, inflation in Brazil was predicted at 10.7 percent in 2016, and we reached the end of the year within the target, or rather at 6.29 percent. The target was 6.5 percent. Interest rates are also falling in Brazil, first 0.5 percent, now exactly 0.75 percent, precisely after the fall in inflation," said Temer.
Eight months after taking over from impeached leftist Dilma Rousseff with a vow to restore fiscal discipline, former vice president Temer has pushed through measures to rein in public spending and provide credit to small- and medium-sized companies.
Inflation has slowed significantly but economic activity has yet to pick up. Investor confidence has been shaken by corruption allegations against politicians, including Temer's allies, cabinet ministers and the president himself.
"It is very probable that this semester still, the idle capacity of companies - I call idle capacity the fact that many companies maintained a lot of employees who do not have full productivity - so it is possible that at first instance, the idle capacity can be used by companies, but we think and we have said a lot in the economic area, we think that from the second semester onwards, or half way through the second semester, unemployment will begin to reduce and growth with come once and for all," the president said.
Temer's popularity has languished, prompting unions and Rousseff's ousted Workers Party to threaten street protests. He said the focus would be on unemployment, and that that would require economic growth.
"Unemployment - you know that when we take these measures, our concern is to put the country back on track! I say that very often because we still have two years to do that, so if Brazil is back on track in two years - on track means on track economically, ethically and morally - then the next government will find the country in order, and be able to make it grow progressively more."
Ahead of the inauguration of U.S. President-elect Donald Trump this week, Temer said there was no sign that a more protectionist stance in the world's top economy would have any negative impact on Brazil.
Temer, a veteran lawmaker known for his cautious and methodical approach, forecast no change in trade and investment ties with the United States, Brazil's second-largest trading partner after China.
"The Chinese have invested a lot in Brazil, the truth is that it is our greatest commercial partner after the United States. I do not think that this will change our relationship with the United States, on the contrary, I think the United States will have even greater intentions of investing in Brazilian companies, I have no doubt, and China will continue investing," said Temer.
Despite his weak poll ratings, Temer retains a comfortable majority in Congress and he voiced confidence his coalition would approve a major overhauls. He added that he would not run in the 2018 presidential elections, but rather hoped to deliver the country to his successor in a better state. - Copyright Holder: REUTERS
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