Brazil's economy can grow 3% annually, Haddad says

(Reuters) -Brazilian Finance Minister Fernando Haddad said on Monday the country has the conditions to grow at an average pace of 3% per year, which is the goal of President Luiz Inacio Lula da Silva's administration.

Brazil's Finance Ministry officially projects 2.3% gross domestic product (GDP) growth for Latin America's largest economy this year, following expansions of 3.4% in 2024 and 3.2% in 2023 during the first two years of Lula's leftist government.

The central bank, which is leading an aggressive tightening cycle to cool activity and curb inflation, has signaled another rate hike for Wednesday and forecasts 1.9% economic growth in 2025.

Speaking at the Milken Institute Global Conference in Los Angeles, Haddad said he traveled to the United States to promote the pre-launch of a national data center policy powered by clean energy, which will include tax incentives to attract investment, as previously reported by Reuters.

He is scheduled to meet with tech executives on Tuesday in Palo Alto to present the plan.

Haddad said Brazil is looking for closer ties with the United States and will pursue that goal under the Republican administration led by U.S. President Donald Trump.

Amid global trade uncertainty following sweeping U.S. tariffs and China's retaliatory measures, Haddad said Brazil is in a favorable position as it advocates for sustainable reglobalization and continues to support multilateralism.

(Reporting by Marcela Ayres; Editing by Kylie Madry)

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