Although I do not believe that such easy credit concessions will have a short-term effect on economic development mainly due to families’ unwillingness to incur more debt and the growing distrust of investors, the credit market, when used sustainably, is always It had a prominent place in the economic and social development of a country.
Production capacity and sustainable economic development
Continued expansion of production capacity is what promotes the sustainable economic development of a nation. By production capacity we must understand the production potential per worker.
It is based on two pillars, capital investment and human resources, promoting the accumulation of productive capital and increased individual productivity.
It is important for growth to continue at a rapid pace that investments are made correctly, that is, in alternatives that have the highest economic and social returns or in strategic sectors for potential GDP growth and diminishing social inequality.
Potential GDP is the Gross Domestic Product that would be achieved if the country did not have idle capacity, that is, with all its productive capital and labor optimally employed.
Not by chance, the new lines of credit are directed to the agricultural, export and infrastructure sectors.
The first two prove the point that investment should seek the highest returns.
The agricultural sector is responsible for approximately R $ 1 trillion or 23% of GDP and this is where we find the highest productivity of the Brazilian worker due to its high external competitiveness.
The export sector, in turn, in 4 of the last 5 economic crises that Brazil faced was the largest contributor to its overcoming due to exchange rate depreciation.
The increase in credit lines for the infrastructure sector is based on its extreme importance for the growth of our production capacity and potential GDP increase. Besides being a great articulator regarding the attraction of foreign investment in Brazil, it is a weak point where the country really needs improvement.
Especially now with the major players in the industry being investigated by the federal police Car Wash.
And where does all this money come from?
Much of this capital comes from taxes and duties that the government collects and deposits in its checking account with Banco do Brasil.
Another part comes from the issuance of Brazilian government debt securities, the famous National Treasury bonds. The government collects third party capital through the sale of these securities in the fixed income market. It is like signing a contract where he receives money from the investor and commits to a payout of X% at a future date.