Opening of the Rice Harvest discusses scenarios of the Brazilian economy

The Panel “Scenarios and Perspectives of the Economic Area”, which will be held on Wednesday, February 16, during the 32nd Official Opening of Harvesting Rice and Grains in Lowlands, will present the possible trajectories of the Brazilian economy for 2022. The lecture will be given by the professor at the Higher School of Advertising and Marketing (ESPM), Fábio Pesavento, master and doctor in economics, mediated by the chief economist of the Agriculture Federation of Rio Grande do Sul (Farsul),  Antônio da Light.

According to Pesavento, understanding the prospective scenario is fundamental importance for the construction of actions that must be adopted today. “Whenever we can point out possible trajectories of the economy, we can adjust different aspects of the business in order to mitigate risks, find solutions and, above all, visualize opportunities. In this sense, the panel serves this purpose, which In other words, we will have the opportunity to share economic scenarios Brazilian sector with a sector of fundamental importance for the performance of Gross Domestic Product (GDP),” he states.

Pesavento highlights that the agribusiness in Rio Grande do Sul started 2022 with the presence of the feared drought and the drop in production of important crops, such as soybeans and corn, already reached 50%, even exceeding 75% in some regions. Note, therefore, that the result, as verified in events similar in the past, there will be lower GDP growth in Rio Grande do South, due to the effects that primary production has on the economic activity, external sector and public accounts. "Furthermore, the supply shock will impact food prices, which are already high", he points out, also highlighting inflation and the upward trajectory of Selic interest rate.

The ESPM professor highlights that another point that makes it difficult to achieve a better result for the Brazilian economy in this year is the fiscal framework. According to Pesavento, despite the improvement in accounts public in 2021, the government's primary result has been in deficit since 2014. “This means that we are unable to balance expenses and revenue, not counting interest on the debt. This negative scenario was worsened by the expenses incurred to combat the pandemic. It is not the ideal scenario, but Brazilian society has already overcome much more challenging moments and we will certainly go through more this, especially with full vaccination”, he points out.

The 32nd edition of the Official Opening of the Rice and Grains Harvest in Lowlands takes place from February 16th to 18th at Embrapa’s Terras Baixas Station Temperate Climate, in Capão do Leão (RS), with in-person and online. The event will have a Health Protocol aimed at preventing and combating the epidemic and will be carried out in a completely open. Among the measures are the mandatory use of masks, hand hygiene, registration preferably in digital mode or electronics, signage materials and guidance team for visitors. According to State Government regulations, there will be a requirement for vaccination passport or as an alternative, presenting the PCR.