Brazilian economist Cláudio Frischtak provided NBCC with an update on Brazilian economy and political situation in a webinar called “Brazil: Where to now?”
Cláudio Frischtak is the President at Inter.B consultoria Internacional de Negócios, with a background from the World Bank and Georgetown University. He is also a member of the board of CEBRI, CNI, ABOL and Wilson & Sons. 45 people attended the online event on June 19, 2020.
According to Mr. Frischtak, the pandemic supply and demand shocks came on top of a stressed market and rising geopolitical tensions.
“Frankly nobody knows how big the contraction of the economy will be, but we will emerge less wealthy from the pandemic. After a shock of this magnitude, it is not possible to go back to status quo. Not only families but also countries will face difficulties”, he said.
Mr. Frischtak believes it will take a 2-3 years for GDP to return to 2019 level, and maybe more if countries were to face a second infection wave. In Brazil, we have to take a second layer of uncertainties into consideration, due to the political situation.
“Tension is high, and the two main risks are fiscal fragility and an explosive debt trajectory. But I would not bet against Brazil. We have very solid institutions. There is a huge potential in sectors like agribusiness, energy and renewables, and I hope that relations between Norway and Brazil will continue to flourish”, Mr. Frischtak said.
The event was recorded and the recording is available to NBCC associates. Contact us at communication@nbcc.com.br
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