Brazil Kicks IMF Representative Over Estimate Complaints

Brazil’s government is kicking out the International Monetary Fund’s representative to the country over complaints that the institution’s economic forecasts have been consistently inaccurate.

Economy Minister Paulo Guedes said on Wednesday that the government will not recognize the IMF’s office starting June 30 next year, saying that Brazil no longer needed the institution.

“The IMF was useful in the past, but Brazil has done an extraordinary job in the fiscal area,” Guedes told CNN Brasil after announcing the decision during an event in Sao Paulo.

Guedes cited in the event that the institution had been inaccurate in its economic estimates for the country — in 2020, Brazil’s gross domestic product shrank by 4 percent, way less than the IMF’s estimated decline of 9 percent.

Tensions between the Brazilian government and the IMF have been increasing since the organization published its 2020 economic estimates for the country.

People familiar with the matter told Bloomberg that Guedes felt that the IMF did not take into consideration Brazil’s points regarding metrics and models to be used for GDP estimates.

The economic minister added that since the government had already repaid its loans with the international lender, they “no longer need the IMF stationed in the country.”

Guedes also referred to comments by former central bank chief Ilan Goldfajn who is set to take over as IMF’s director for the Western Hemisphere. “Since there is a Brazilian criticizing (the country) and is going there, there’s no need of having the mission here,” Guedes said.

On Monday, Goldfajn said that foreign investors had already fled Brazil due to failed policies of President Jair Bolsonaro’s administration.

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