Brazil's finance minister predicts economic growth in 2017

Brazilian Finance Minister Henrique Meirelles said on Monday that his country's economy will resume growing in 2017 and generate more jobs.

Job generation will be a natural consequence of economic growth to be activated next year, the minister told a local radio station, adding there are several indications of a potentially better economy next year.

"Brazil needs to reform its economy so that it will grow and be capable of generating jobs and income for the population," he said.

Meirelles underlined the need for economic reforms the Brazilian government is pushing, saying that the PEC241, a controversial constitutional amendment bill to limit governmental expenses, will not affect public education and healthcare sectors.

However, several critics contested the government's stance on the measure, saying the spending cap will indeed limit not only expenses in healthcare and education, but also in other key sectors like housing and sanitation.

The bill stipulates that governmental expenses for the next 20 years will only be allowed to increase by up to the inflation rate of the previous year.

There is a significant concern that the spending cap will result in regressions. In the past years, investments in education and healthcare increased more than the inflation rate, which helped diminish social inequalities in Brazil. Endi