The Organization for Economic Co-operation and Development (OECD) said this week there’s room for Brazil to grow its economy, as Latin America’s largest economy seeks to join the selective group.
“Brazil is emerging from a deep recession. It is private investment that will spark a sustainable recovery. For that, we need to get the policies right,” said OECD Deputy Secretary-General, Ludger Schuknecht, during the Brazil Investment Forum held in São Paulo from October 10-11.
“The public sector should create the framework to make this happen. Social security reform is an important step in this direction. We (also) need a structural reforming agenda. Domestic regulations still burden the (domestic) economy. There (has been) significant progress (in Brazil), but still room for improvement.
Schuknecht’s comments came just as the US reportedly sent a letter dropping its support for Brazil to join OECD, according to a media report from Reuters.
Donald Trump said the statement was “fake news.”
“The joint statement released with President Bolsonaro in March makes absolutely clear that I support Brazil beginning the process for full OECD membership. The United States stands by that statement and stands by Jair Bolsonaro. This article is fake news,” Trump said in his Twitter account.
Schuknecht said Brazil’s commitment to consolidate a reform agenda is a “strong signal Brazil is serious.”
“Raising investment in Brazil is not a minor challenge. Brazil can count on the OECD as an important partner,” Schuknecht said.