Brazil poised to leave recession in 2017: minister

Brazil is set to exit its recession next year with weak growth and is laying the groundwork for a return to long-term stability, Finance Minister Henrique Meirelles said Wednesday.

Meirelles was cautious about predicting exactly when growth would return, following two years of shrinking GDP.

"There are possibilities but also uncertainties that GDP will be positive in the first quarter of 2017. But we are not counting on it," he told a press conference.

Over the year, Brazil can expect one percent growth, according to the government. Market estimates, however, point to an even more meager 0.58 percent rise.

But Meirelles insisted that austerity reforms -- centered on a recently approved 20 year government spending cap -- meant Brazil "is doing its homework."

"We are establishing the basis for fiscally responsible administration in Brazil for at least the next 10 years," he said.

President Michel Temer is also asking Congress to pass pension reform but the measure is unpopular and only 10 percent of Brazilians think his government is doing a good job, a Datafolha poll found this month.

The economy shrank 3.8 percent in 2015 and is expected to fall 3.5 percent in 2016.