According to Finance Minister Nelson Barbosa today in Davos an upside to the Real depreciation is that now there will be a revival in regional trade with Argentina as the two countries’ exchange-rate regimes are better aligned.
Nelson Barbosa met with his Argentine counterpart, Alfonso Prat-Gay, on the sidelines of the World Economic Forum annual meeting and were said to have discussed, among other things, accelerating a trade agreement with the European Union. This is the positive message.
The Minister acknowledged that inflation in 2016 is likely to linger because of the high indexation of the economy. He promised the government would look to put its budget on a stronger footing and push for a tax reform.
By Stephen Fidler