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| New Finance Minister in Brazil Seeks to Counter Pessimism | New Finance Minister in Brazil Seeks to Counter Pessimism |
| (about 4 hours later) | |
| Brazil’s new finance minister sought to assure skeptics on Tuesday that the country’s economy, the largest in Latin America and seventh largest in the world, would reverse a slide that has been complicated by an enormous corruption scandal and impeachment proceedings against the president. | Brazil’s new finance minister sought to assure skeptics on Tuesday that the country’s economy, the largest in Latin America and seventh largest in the world, would reverse a slide that has been complicated by an enormous corruption scandal and impeachment proceedings against the president. |
| “I think the situation is starting to get better,” the minister, Nelson Barbosa, said in a news conference held by phone on his second day on the job. Despite the crisis atmosphere, he said, “there is a common concern to create conditions for faster recovery in Brazil.” | “I think the situation is starting to get better,” the minister, Nelson Barbosa, said in a news conference held by phone on his second day on the job. Despite the crisis atmosphere, he said, “there is a common concern to create conditions for faster recovery in Brazil.” |
| President Dilma Rousseff’s office announced Friday that Mr. Barbosa, who had been planning minister, was replacing Joaquim Levy, a former bank executive and University of Chicago-trained economist who had been finance minister for less than a year. Mr. Levy faced persistent criticism from Ms. Rousseff and her colleagues in the leftist Workers Party over his effort to restore the country’s fiscal and economic health through budget cuts. | President Dilma Rousseff’s office announced Friday that Mr. Barbosa, who had been planning minister, was replacing Joaquim Levy, a former bank executive and University of Chicago-trained economist who had been finance minister for less than a year. Mr. Levy faced persistent criticism from Ms. Rousseff and her colleagues in the leftist Workers Party over his effort to restore the country’s fiscal and economic health through budget cuts. |
| Brazil has lost more than a million jobs this year in the worst recession in decades. The economy shrank by 1.7 percent in the third quarter, the country’s credit rating and currency value have declined, inflation has accelerated, and forecasters are saying the weakness could last for two years. | Brazil has lost more than a million jobs this year in the worst recession in decades. The economy shrank by 1.7 percent in the third quarter, the country’s credit rating and currency value have declined, inflation has accelerated, and forecasters are saying the weakness could last for two years. |
| The economic problems under Ms. Rousseff’s watch have been amplified by widespread public dismay over a corruption scandal that has ensnared Petrobras, the national oil company. She is also fighting an impeachment case that includes what critics call her deceptive concealment of Brazil’s budget shortfalls through the shifting of funds from public banks during her 2014 re-election campaign. | |
| Against this backdrop, Mr. Barbosa, an ally of Ms. Rousseff, faces extraordinary pressure to establish his credibility. | Against this backdrop, Mr. Barbosa, an ally of Ms. Rousseff, faces extraordinary pressure to establish his credibility. |
| On Monday, his first full day on the job, he did little to reassure international investors in a conference call, as evidenced in declines in Brazilian stocks and the value of the currency, the real. | |
| Mr. Barbosa sought to reiterate on Tuesday what he had told investors on Monday: He intends to maintain the fiscal discipline practiced by his predecessor. | Mr. Barbosa sought to reiterate on Tuesday what he had told investors on Monday: He intends to maintain the fiscal discipline practiced by his predecessor. |
| “Our economic policy remains in the same direction,” he told reporters. Acknowledging that the economy has “been through a series of shocks,” he nevertheless expressed confidence that the situation was improving. | “Our economic policy remains in the same direction,” he told reporters. Acknowledging that the economy has “been through a series of shocks,” he nevertheless expressed confidence that the situation was improving. |
| “I’m sure we will be able to resume growing, and reduce inflation, much faster than expected,” Mr. Barbosa said. | “I’m sure we will be able to resume growing, and reduce inflation, much faster than expected,” Mr. Barbosa said. |
| He sought to play down the political feuding surrounding Ms. Rousseff, expressing confidence that members of Congress and her administration could unite around the common concern of the country’s economic health. | He sought to play down the political feuding surrounding Ms. Rousseff, expressing confidence that members of Congress and her administration could unite around the common concern of the country’s economic health. |
| Mr. Barbosa drew an analogy to President Obama and Republican adversaries in Congress who, despite their differences over debt and spending, were able to avoid a government shutdown and agree on a budget last week. | Mr. Barbosa drew an analogy to President Obama and Republican adversaries in Congress who, despite their differences over debt and spending, were able to avoid a government shutdown and agree on a budget last week. |
| “At the end of the day, Congress solved the problem,” he said. | “At the end of the day, Congress solved the problem,” he said. |
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